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How Immigrants Fare across the Earnings Distribution in Australia and the United States

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Author Info

  • Barry R. Chiswick
  • Anh T. Le
  • Paul W. Miller

Abstract

This paper investigates determinants of the earnings distribution for native-born workers and immigrant workers in two countries. The authors, using data from the 2000 U.S. Census and 2001 Australian Census, employ a methodology (quantile regression) that facilitates measurement of the native-born/immigrant earnings differential and the partial effect of explanatory variables such as schooling and experience at each decile of the earnings distribution. They find evidence that schooling and labor market experience had stronger earnings effects at higher deciles. The native/immigrant earnings gap varied by decile, and in particular increased in the United States at higher deciles. The results suggest that in the United States minimum wages compressed earnings at low deciles, whereas in Australia the minimum (administered) wage system compressed earnings across the entire distribution. A pattern of higher earnings for immigrants than for the native-born at the lowest earnings decile in Australia may reflect favorable selectivity in migration.

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 61 (2008)
Issue (Month): 3 (April)
Pages: 353-373

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Handle: RePEc:ilr:articl:v:61:y:2008:i:3:p:353-373

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Cited by:
  1. Wahlberg, Roger, 2008. "Differences in Wage Distributions between Natives, Non-Refugees, and Refugees," Working Papers in Economics 316, University of Gothenburg, Department of Economics.
  2. Cosimo Beverelli & Gianluca Orefice & Nadia Rocha, 2011. "Offshoring and Migration in a World with Policy Spillovers," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 11105, Institut d'Economie et Econométrie, Université de Genève.
  3. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2010. "From guests to hosts: immigrant-native wage differentials in Spain," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 645-659, September.
  4. Sara Lemos, 2011. "Mind the Gap: What Gap? A Detailed Picture of the Immigrant-Native Earnings Gap in the UK using Longitudinal Data between 1978 and 2006," Discussion Papers in Economics 11/38, Department of Economics, University of Leicester, revised Oct 2011.
  5. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
  6. Cobb-Clark, Deborah A. & Hanel, Barbara & McVicar, Duncan, 2012. "Immigrant Wage and Employment Assimilation: A Comparison of Methods," IZA Discussion Papers 7062, Institute for the Study of Labor (IZA).
  7. José-Ignacio Antón & Rafael Mu�oz de Bustillo, 2009. "Immigration And Discrimination In A Former Emigrant Country: The Case Of Spain," Working Papers 2009.2, International Network for Economic Research - INFER.
  8. Antón, José-Ignacio & Carrera, Miguel & Muñoz de Bustillo, Rafael, 2009. "How are you doing in your grandpa’s country? Labour market performance of Latin American immigrants in Spain," MPRA Paper 15051, University Library of Munich, Germany.
  9. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
  10. Lemos, Sara, 2013. "Immigrant economic assimilation: Evidence from UK longitudinal data between 1978 and 2006," Labour Economics, Elsevier, vol. 24(C), pages 339-353.
  11. repec:dgr:uvatin:2009047 is not listed on IDEAS
  12. Nandi, Alita & Nicoletti, Cheti, 2009. "Explaining personality pay gaps in the UK," ISER Working Paper Series 2009-22, Institute for Social and Economic Research.
  13. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2010. "Ethnic Minorities in the European Union: An Overview," Discussion Papers of DIW Berlin 1090, DIW Berlin, German Institute for Economic Research.
  14. VAN KERM Philippe & YU Seunghee & CHOE Chung, 2014. "Wage differentials between native, immigrant and cross-border workers: Evidence and model comparisons," CEPS/INSTEAD Working Paper Series 2014-05, CEPS/INSTEAD.
  15. Frank Walsh, 2013. "Labour Market Regulation and Migration in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(1), pages 85–102.
  16. Lemos, Sara, 2011. "Mind the Gap: A Detailed Picture of the Immigrant-Native Earnings Gap in the UK Using Longitudinal Data Between 1978 and 2006," IZA Discussion Papers 6058, Institute for the Study of Labor (IZA).
  17. Muñoz de Bustillo, Rafael & Carrera, Miguel & Antón, José-Ignacio, 2009. "From guests to hosts: a first whole picture of immigrant-native wage differentials in Spain," MPRA Paper 13928, University Library of Munich, Germany.

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