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Immigration, Search, and Loss of Skill

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  • Yoram Weiss

    (Tel Aviv University)

  • Robert M. Sauer

    (Hebrew University of Jerusalem)

  • Menachem Gotlibovski

    (Academic College of Tel-Aviv-Yaffo)

Abstract

This article develops and estimates an on-the-job search model of the entry of highly skilled immigrants from the former Soviet Union into the Israeli labor market. The estimated parameters of the model, together with information on the wages of immigrants from earlier waves, imply that, on average, immigrants can expect lifetime earnings to fall short of the lifetime earnings of comparable natives by 57%. Of this figure, 14 percentage points reflect frictions associated with nonemployment and job distribution mismatch, and 43 percentage points reflect the gradual adaptation of imported schooling and experience to the local labor market.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 21 (2003)
Issue (Month): 3 (July)
Pages: 557-592

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Handle: RePEc:ucp:jlabec:v:21:y:2003:i:3:p:557-592

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Web page: http://www.journals.uchicago.edu/JOLE/

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