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The influence of measurement error and unobserved heterogeneity in estimating immigrant returns to foreign and host-country sources of human capital

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  • Mikal Skuterud
  • Mingcui Su

Abstract

Studies which estimate separate returns to foreign and host-country sources of human capital have burgeoned in the immigration literature in recent years. In estimating separate returns, analysts are typically forced to make strong assumptions about the timing and exogeneity of human capital investments. Using a particularly rich longitudinal Canadian data source, we consider to what extent the findings of this literature may be driven by biases arising from errors in measuring foreign and host-country sources of human capital and the endogeneity of post-migration schooling and work experience. Our main finding is that the results of the current literature by and large do not appear to be driven by the assumptions needed to estimate separate returns using the standard data sources available. Copyright Springer-Verlag 2012

Suggested Citation

  • Mikal Skuterud & Mingcui Su, 2012. "The influence of measurement error and unobserved heterogeneity in estimating immigrant returns to foreign and host-country sources of human capital," Empirical Economics, Springer, vol. 43(3), pages 1109-1141, December.
    • Handle: RePEc:spr:empeco:v:43:y:2012:i:3:p:1109-1141
    DOI: 10.1007/s00181-011-0521-9
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    Cited by:

    1. Dostie, Benoit & Li, Jiang & Card, David & Parent, Daniel, 2023. "Employer policies and the immigrant–native earnings gap," Journal of Econometrics, Elsevier, vol. 233(2), pages 544-567.
    2. Joel Blit & Mikal Skuterud & Jue Zhang, "undated". "The impact of patent protection on R&D. Evidence using export markets," Working Papers 17011, University of Waterloo, Department of Economics.
    3. Chen, Zong Jia & Skuterud, Mikal, 2017. "The relative labour market performance of former international students: Evidence from the Canadian National Graduates Survey," CLEF Working Paper Series 11, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. Chen, Zong Jia & Skuterud, Mikal, 2017. "The Relative Labour Market Performance of Former International Students: Evidence from the Canadian National Graduates Survey," IZA Discussion Papers 10699, Institute of Labor Economics (IZA).
    5. Mikal Skuterud & Zong Jia Chen, 2018. "Comparing Outcomes: The Relative Job-Market Performance of Former International Students," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 518, August.
    6. Cláudia Duarte & Sónia Cabral, 2013. "Mind the gap! The relative wages of immigrants in the Portuguese labour market," Working Papers w201305, Banco de Portugal, Economics and Research Department.
    7. Jason Dean, 2018. "Does it matter if immigrants work in jobs related to their education?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-42, December.
    8. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2016. "Immigrant job search assimilation in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 5-51, February.
    9. Eric Schuss, 2016. "Between Life Cycle Model, Labor Market Integration and Discrimination: An Econometric Analysis of the Determinants of Return Migration," SOEPpapers on Multidisciplinary Panel Data Research 881, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Jain, Apoorva & Peter, Klara Sabirianova, 2017. "Limits to Wage Growth: Understanding the Wage Divergence between Immigrants and Natives," IZA Discussion Papers 10891, Institute of Labor Economics (IZA).
    11. Blit, Joel & Skuterud, Mikal & Zhang, Jue, 2017. "Immigration and innovation: Evidence from Canadian cities," CLEF Working Paper Series 12, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    12. Anil Verma & Jeffrey G. Reitz & Rupa Banerjee, 2016. "Unionization and Income Growth of Racial Minority Immigrants in Canada: A Longitudinal Study," International Migration Review, Wiley Blackwell, vol. 50(3), pages 667-698, September.

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    More about this item

    Keywords

    Immigrant workers; Labour market assimilation; Wage differentials; Human capital; J61; J31; J24;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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