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Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions

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Author Info
Erling Barth
Bernt Bratsberg
Oddbj¯rn Raaum

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Abstract

Failure to account for differences between immigrants and natives in their responsiveness to changes in macroeconomic conditions may bias estimates of assimilation effects on immigrant earnings. Using Norwegian register data from 1980 to 1996, we first establish that earnings of immigrants from non-OECD countries exhibit greater sensitivity to local unemployment than do earnings of natives. The empirical analysis further reveals that standard methods of estimation-which fail to consider differential immigrant and native responsiveness-understate earnings growth and overstate cohort differentials among non-OECD immigrants. These biases are attributable to trends in macroeconomic conditions over the sample period. Copyright The editors of the "Scandinavian Journal of Economics", 2004 .

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Publisher Info
Article provided by Blackwell Publishing in its journal The Scandinavian Journal of Economics.

Volume (Year): 106 (2004)
Issue (Month): 1 (03)
Pages: 1-22
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Handle: RePEc:bla:scandj:v:106:y:2004:i:1:p:1-22

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  1. Taryn Ann Galloway & Rolf Aaberge, 2005. "Assimilation effects on poverty among immigrants in Norway," Journal of Population Economics, Springer, vol. 18(4), pages 691-718, November. [Downloadable!] (restricted)
    Other versions:
  2. Aslund, Olof & Böhlmark, Anders & Nordström Skans, Oskar, 2009. "Age at Migration and Social Integration," IZA Discussion Papers 4263, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Ken Clark & Joanne Kathryn Lindley, 2005. "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the Labour Force Survey," Working Papers 2005004, The University of Sheffield, Department of Economics, revised Jan 2005. [Downloadable!]
  4. Ken Clark & Joanne Lindley, 2009. "Immigrant assimilation pre and post labour market entry: evidence from the UK Labour Force Survey," Journal of Population Economics, Springer, vol. 22(1), pages 175-198, January. [Downloadable!] (restricted)
  5. Akay, Alpaslan & Karabulut, Gokhan & Tezic, Kerem, 2006. "Economic Performance of Turkish Immigrant Men in the European Labour-Market: Evidence from Sweden," Working Papers in Economics 240, Göteborg University, Department of Economics. [Downloadable!]
  6. Taryn Ann Galloway, 2006. "Do Immigrants Integrate Out of Poverty in Norway," Discussion Papers 482, Research Department of Statistics Norway. [Downloadable!]
  7. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2008. "When Minority Labor Migrants Meet the Welfare State," CReAM Discussion Paper Series 0817, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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  8. Christian Dustmann & Albrecht Glitz & Thorsten Vogel, 2006. "Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives," CReAM Discussion Paper Series 0609, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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  9. Galloway, Taryn Ann & Gustafsson, Björn & Pedersen, Peder J. & Österberg, Torun, 2009. "Immigrant Child Poverty in Scandinavia: A Panel Data Study," IZA Discussion Papers 4232, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Dahlberg, Matz & Johansson, Kajsa & Mörk, Eva, 2008. "On mandatory activation of welfare receivers," Working Paper Series 2008:24, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  12. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2006. "Immigration, Integration and the Labour Market," CPB Discussion Papers 75, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  13. Matti Sarvimäki, 2008. "Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland," Discussion Papers 454, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  14. Ekhaugen, Tyra, 2005. "Immigrants on Welfare: Assimilation and Benefit Substitution," Memorandum 18/2005, Oslo University, Department of Economics. [Downloadable!]
  15. Ken Clark & Joanne Lindley, 2006. "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the UK Labour Force Survey," IZA Discussion Papers 2228, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Taryn Ann Galloway, 2006. "The Labor Market Integration of Immigrant Men and Women," Discussion Papers 483, Research Department of Statistics Norway. [Downloadable!]
  17. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers 30, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  18. Cristina Fernández & Carolina Ortega, 2008. "Labor market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," Spanish Economic Review, Springer, vol. 10(2), pages 83-107, June. [Downloadable!] (restricted)
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