Differences between people with a foreign background and the native Dutch population in age composition, working hours, household composition and level of education all contribute to the differences in income between these two groups. First of all incomes were compared without any correction for these factors. Subsequently income differences were calculated after correction – with the aid of regression analysis – for differences in age composition, working hours, and household composition. Lastly, an additional correction was applied for differences in level of education. The reduction of the income differences after the additional correction for education can be seen as the net effect of education on income.
The following categories were applied for household composition and working hours.
Single, one-parent family, couple without children, couple with children.
0 hours, 1–11 hours, 12–34 hours, and 35 or more hours.