Public Policy and Administration Research www.
iiste.
org
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.
1, No.
1, 2011
34 | P a g e
www.
iiste.
org
Earnings and Sectoral Choice of Low-Skill Afghan Workers
in Iran: Evidence from Micro-Level Survey Data...
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Public Policy and Administration Research www.
iiste.
org
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.
1, No.
1, 2011
34 | P a g e
www.
iiste.
org
Earnings and Sectoral Choice of Low-Skill Afghan Workers
in Iran: Evidence from Micro-Level Survey Data
Bhaswati Sengupta1
Department of Economics, Hofstra University, Hempstead, New York 11549
E-mail: Bhaswati.
Sengupta@hofstra.
edu
Abstract
Iran hosts the world s second largest Afghan population, consisting of both refugees and undocumented
migrants.
As a consequence, Afghans have an established presence in the labor markets of certain
provinces in Iran that is likely to persist into the foreseeable future.
Utilizing data from the ILO on
establishments that employ both Afghan and Iranian labor, we test for earnings differentials between
the two groups using a selection-bias correction model.
This specification is proposed under the
assumption that workers may be heterogenous with respect to the strength of their labor market
contac
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