IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v51y2005i4p485-503.html
   My bibliography  Save this article

Immigrant Earnings: A Longitudinal Analysis

Author

Listed:
  • Barry R. Chiswick
  • Yew Liang Lee
  • Paul W. Miller

Abstract

This paper uses the Longitudinal Survey of Immigrants to Australia to analyze the determinants of the level and growth in earnings of adult male immigrants in their first 3.5 years in Australia. The theoretical framework is based on the immigrant adjustment model, which incorporates both the transferability of immigrant skills and selectively in migration. The cross‐sectional and longitudinal analyses generate similar findings. The level and relative growth of earnings are higher for immigrants with higher levels of skill and who are economic/skills tested migrants, as distinct from family based and refugee migrants. The analysis indicates that immigrant economic assimilation does occur and that in these data the cross‐section provides a good estimate of the longitudinal progress of immigrants. The findings are robust across statistical techniques.

Suggested Citation

  • Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 485-503, December.
    • Handle: RePEc:bla:revinw:v:51:y:2005:i:4:p:485-503
    DOI: 10.1111/1467-9361.00039
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9361.00039
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9361.00039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52, March.
    2. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 101-130, April.
    3. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    4. Nakamura, Alice & Nakamura, Masao, 1985. "The Second Paycheck," Elsevier Monographs, Elsevier, edition 1, number 9780125138208.
    5. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    6. Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-553, June.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    8. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    9. Miller, Paul W, 1989. "Low-Wage Youth Employment: A Permanent or Transitory State?," The Economic Record, The Economic Society of Australia, vol. 65(189), pages 126-135, June.
    10. Turkington, Darrell A, 1985. "A Note on Two-Stage Least Squares, Three-Stage Least Squares, and Maximum Likelihood Estimation in an Expectations Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 507-510, June.
    11. Miller, Paul & Volker, Paul, 1987. "The Youth Labour Market In Australia," The Economic Record, The Economic Society of Australia, vol. 63(182), pages 203-219, September.
    12. William Fellner, 1979. "Contemporary Economic Problems, 1979," Books, American Enterprise Institute, number 918293, September.
    13. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," IZA Discussion Papers 452, Institute of Labor Economics (IZA).
    14. Dolton, P. J. & Makepeace, G. H., 1987. "Interpreting sample selection effects," Economics Letters, Elsevier, vol. 24(4), pages 373-379.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    2. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers on Multidisciplinary Panel Data Research 30, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Ilana Redstone Akresh, 2008. "Occupational Trajectories of Legal US Immigrants: Downgrading and Recovery," Population and Development Review, The Population Council, Inc., vol. 34(3), pages 435-456, September.
    4. Beenstock, Michael & Chiswick, Barry R. & Paltiel, Ari, 2005. "Endogenous Assimilation and Immigrant Adjustment in Longitudinal Data," IZA Discussion Papers 1840, Institute of Labor Economics (IZA).
    5. Chiswick, Barry R. & Miller, Paul W., 2008. "Why is the payoff to schooling smaller for immigrants?," Labour Economics, Elsevier, vol. 15(6), pages 1317-1340, December.
    6. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    7. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    8. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," IZA Discussion Papers 452, Institute of Labor Economics (IZA).
    9. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute of Labor Economics (IZA).
    10. Derek Hum & Wayne Simpson, 2002. "Analysis of the Performance of Immigrant Wages Using Panel Data," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C2-1, International Conferences on Panel Data.
    11. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    12. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    13. A.T. Le, 1998. "Self Employment and Earnings Among Immigrants in Australia," Economics Discussion / Working Papers 98-28, The University of Western Australia, Department of Economics.
    14. Robert Breunig & Syed Hasan & Mosfequs Salehin, 2013. "The Immigrant Wage Gap and Assimilation in Australia: Does Unobserved Heterogeneity Matter?," The Economic Record, The Economic Society of Australia, vol. 89(287), pages 490-507, December.
    15. Michael Beenstock & Barry Chiswick & Ari Paltiel, 2010. "Testing the immigrant assimilation hypothesis with longitudinal data," Review of Economics of the Household, Springer, vol. 8(1), pages 7-27, March.
    16. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    17. Aldashev, Alisher & Gernandt, Johannes & Thomsen, Stephan L., 2009. "Language usage, participation, employment and earnings: Evidence for foreigners in West Germany with multiple sources of selection," Labour Economics, Elsevier, vol. 16(3), pages 330-341, June.
    18. Leilanie Basilio & Thomas K. Bauer & Anica Kramer, 2017. "Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany," LABOUR, CEIS, vol. 31(3), pages 245-264, September.
    19. Barry R. Chiswick & Paul W. Miller, 2007. "Modeling Immigrants’ Language Skills," Research in Labor Economics, in: Immigration, pages 75-128, Emerald Group Publishing Limited.
    20. Uebelmesser Silke, 2006. "To Go or Not to Go: Emigration from Germany," German Economic Review, De Gruyter, vol. 7(2), pages 211-231, May.
    21. Akay, Alpaslan & Tsakas, Elias, 2006. "Second Order Approximation for the Average Marginal Effect of Heckman's Two Step Procedure," Working Papers in Economics 239, University of Gothenburg, Department of Economics.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:51:y:2005:i:4:p:485-503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.