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Immigrant Earnings, Relative to What? The Importance of Earnings Function Specification and Comparison Points

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  • Yuengert, A M

Abstract

Immigrant relative earnings estimates are sensitive to the choice of comparison point and the specification of earnings. Non-sample mean comparisons (Borjas, 1985) understate relative earnings. Simple earnings specifications (linear education, quadratic experience) overstate relative earnings for both poorly and well-educated immigrants. Specifications which ignore omitted variables understate the relative earnings of poorly educated immigrants and overstate those of well-educated ones. Although measures of assimilation and changes in immigrant quality are insensitive to earnings specification, they indicate strong earnings growth for post-1964 immigrants, an overall decrease in immigrant quality, and an increase in Mexican immigrant quality. Copyright 1994 by John Wiley & Sons, Ltd.

Suggested Citation

  • Yuengert, A M, 1994. "Immigrant Earnings, Relative to What? The Importance of Earnings Function Specification and Comparison Points," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(1), pages 71-90, Jan.-Marc.
    • Handle: RePEc:jae:japmet:v:9:y:1994:i:1:p:71-90
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    Cited by:

    1. Christoph M. Schmidt & Michael Fertig, 2002. "Mobility within Europe – The Attitudes of European Youngsters," RWI Discussion Papers 0001, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    2. repec:zbw:rwirep:0020 is not listed on IDEAS
    3. Roger Wilkins, 2003. "Immigrant and Native-born Earnings Distributions in Australia: 1982-1996," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 83-115, March.
    4. repec:zbw:rwidps:0001 is not listed on IDEAS
    5. James Ted Mcdonald & Christopher Worswick, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 49-62, March.
    6. Tremblay, Rodrigue, 1998. "Mobilité internationale des facteurs de production en situation de chômage et de libre-échange," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(2), pages 245-271, juin.
    7. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    8. George J. Borjas, 2000. "The Economic Progress of Immigrants," NBER Chapters, in: Issues in the Economics of Immigration, pages 15-50, National Bureau of Economic Research, Inc.
    9. Derek Hum & Wayne Simpson, 2007. "The legacy of immigration: labour market performance and education in the second generation," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1985-2009.
    10. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56, National Bureau of Economic Research, Inc.
    11. Fertig, Michael & Schmidt, Christoph M., 2002. "Mobility within Europe – What do we (still not) know?," IZA Discussion Papers 447, Institute of Labor Economics (IZA).
    12. Barry R. Chiswick & Anh T. Le & Paul W. Miller, 2008. "How Immigrants Fare across the Earnings Distribution in Australia and the United States," ILR Review, Cornell University, ILR School, vol. 61(3), pages 353-373, April.
    13. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 135-168, June.
    14. Feliciano, Zadia M., 2001. "The Skill and Economic Performance of Mexican Immigrants from 1910 to 1990," Explorations in Economic History, Elsevier, vol. 38(3), pages 386-409, July.
    15. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Michael Fertig & Stefanie Schurer, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    17. Kristin F. Butcher & John Dinardo, 2002. "The Immigrant and Native-Born Wage Distributions: Evidence from United States Censuses," ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
    18. Ahmed, Nina, 2005. "Intergenerational Impact of Immigrants' Selection and Assimilation on Health Outcomes of Children," Analytical Studies Branch Research Paper Series 2005247e, Statistics Canada, Analytical Studies Branch.
    19. Fertig, Michael & Schmidt, Christoph M., 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," IZA Discussion Papers 286, Institute of Labor Economics (IZA).
    20. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    21. Pokrovsky, D. & Shapoval, A., 2015. "Distribution of Entrepreneurial Skills and Migration: Employment Structure, Income Inequality, and Welfare," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 36-62.
    22. 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).

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