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On the Relative Gains to Immigration: A Comparison of the Labour Market Position of Indians in the USA, the UK and India

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Author Info
Jonathan Wadsworth
Augustin de Coulon

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Abstract

While most studies of the decision to immigrate focus on the absolute income differencesbetween countries, we argue that relative change in purchasing power or status, as capturedby an individual's ranking in the wage distribution, may also be important. This will in turnbe influenced by differential levels of supply, demand and migration costs across the skilldistribution and across countries. Using data on Indian immigrants in the United States andthe UK matched to comparable data on individuals who remained in India, we show that theaverage Indian immigrant will experience a fall in their relative ranking in the wagedistribution compared to the position they would have achieved had they remained in theorigin country. The fall in relative rankings is larger for immigrants to the UK than to theUS, and largest of all for those with intermediate skills.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0851.

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Date of creation: Feb 2008
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Handle: RePEc:cep:cepdps:dp0851

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Related research
Keywords: immigration; wages; relative ranking;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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  1. Antecol, Heather & Cobb-Clark, Deborah A. & Trejo, Stephen, 2001. "Immigration Policy and the Skills of Immigrants to Australia, Canada, and the United States," IZA Discussion Papers 363, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  3. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Kristin F. Butcher & John DiNardo, 2002. "The Immigrant and native-born wage distributions: Evidence from United States censuses," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(1), pages 97-121, October.
    Other versions:
  5. Antecol, Heather & Cobb-Clark, Deborah A. & Trejo, Stephen J., 2002. "Human Capital and Earnings of Female Immigrants to Australia, Canada, and the United States," IZA Discussion Papers 575, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Antecol, Heather & Kuhn, Peter & Trejo, Stephen J., 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Bauer, Thomas K. & Pereira, Pedro T. & Vogler, Michael & Zimmermann, Klaus F., 1998. "Portuguese Migrants in the German Labor Market: Performance and Self-Selection," IZA Discussion Papers 20, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Adsera, Alicia & Chiswick, Barry R., 2004. "Are There Gender and Country of Origin Differences in Immigrant Labor Market Outcomes across European Destinations?," IZA Discussion Papers 1432, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier. [Downloadable!] (restricted)
  11. George J. Borjas, 1988. "Immigration And Self-Selection," NBER Working Papers 2566, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September. [Downloadable!] (restricted)
    Other versions:
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