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Immigration, Search, and Loss of Skill

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Author Info
Yoram Weiss (Tel Aviv University)
Robert M. Sauer (Hebrew University of Jerusalem)
Menachem Gotlibovski (Academic College of Tel-Aviv-Yaffo)

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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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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JOLE210303
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Publisher 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
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jlabec:v:21:y:2003:i:3:p:557-592

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  1. Ingo Geishecker & John P. Haisken-DeNew, 2002. "Riding the Transition Roller-Coaster: Flexibility and the Inter-Industry Wage Structure in Russia," Discussion Papers of DIW Berlin 280, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  2. 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, vol. 10(2), pages 135-168, June. [Downloadable!] (restricted)
  3. Eli Berman & Kevin Lang & Erez Siniver, 2000. "Language-Skill Complementarity: Returns to Immigrant Language Acquisition," NBER Working Papers 7737, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Bauer, Thomas & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Kugler, Adriana D. & Sauer, Robert M, 2003. "Doctors without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," CEPR Discussion Papers 3683, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Eckstein, Zvi & Weiss, Yoram, 2003. "On the Wage Growth of Immigrants: Israel, 1990-2000," IZA Discussion Papers 710, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Kugler, Adriana D. & Sauer, Robert M., 2002. "Doctors Without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," IZA Discussion Papers 634, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Cohen, Sarit & Eckstein, Zvi, 2002. "Labor Mobility of Immigrants: Training, Experience, Language and Opportunities," IZA Discussion Papers 519, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Adriana Kugler & Robert Sauer, 2002. "Doctors without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," Economics Working Papers 648, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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