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Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States

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Author Info

  • Heather Antecol

    () (Department of Economics, Claremont McKenna College)

  • Peter Kuhn

    () (Department of Economics, University of California)

  • Stephen Trejo

    () (Department of Economics, University of Texas)

Abstract

Using 1980/81 and 1990/91 census data from Australia, Canada, and the United States, we estimate the effects of time in the destination country on male immigrants' wages, employment, and earnings. We find that total earnings assimilation is greatest in the United States and least in Australia. Employment assimilation explains all of the earnings progress experienced by Australian immigrants, whereas wage assimilation plays the dominant role in the United States, and Canada falls in-between. We argue that relatively inflexible wages and generous unemployment insurance in countries like Australia may cause assimilation to occur along the "quantity" rather than the price dimension.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0603.

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Date of creation: Feb 2006
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Handle: RePEc:crm:wpaper:0603

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References

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  1. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The labor market status of immigrants: Effects of the unemployment rate at arrival and duration of residence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(2), pages 289-303, January.
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  4. McDonald, James Ted & Worswick, Christopher, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 49-62, March.
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  8. David Card & Francis Kramarz & Thomas Lemieux, 1995. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Working Papers 734, Princeton University, Department of Economics, Industrial Relations Section..
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  10. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
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  13. 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.
  14. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  15. Joshua D. Angrist & Adriana D. Kugler, 2001. "Protective or counter-productive? Labor market institutions and the effect of immigration on EU natives," Economics Working Papers 587, Department of Economics and Business, Universitat Pompeu Fabra.
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  17. Moene, Karl Ove & Wallerstein, Michael, 1997. "Pay Inequality," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 403-30, July.
  18. Edward Funkhouser, 2000. "Convergence in Employment Rates of Immigrants," NBER Chapters, in: Issues in the Economics of Immigration, pages 143-184 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Casey Warman, 2007. "You Can Take it with You! The Returns to Foreign Human Capital of Male Temporary Foreign Workers," Working Papers 1125, Queen's University, Department of Economics.
  2. Hamermesh, Daniel S. & Trejo, Stephen, 2010. "How Do Immigrants Spend Their Time? The Process of Assimilation," IZA Discussion Papers 5010, Institute for the Study of Labor (IZA).
  3. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
  4. Ken Clark & Joanne Lindley, 2009. "Immigrant assimilation pre and post labour market entry: evidence from the UK Labour Force Survey," Journal of Population Economics, Springer, vol. 22(1), pages 175-198, January.
  5. Brian Duncan & Stephen Trejo, 2009. "Immigration and the U.S. Labor Market," CReAM Discussion Paper Series 0908, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Mario Izquierdo & Aitor Lacuesta & Raquel Vegas, 2009. "Assimilation of immigrants in Spain: A longitudinal analysis," Banco de España Working Papers 0904, Banco de España.
  7. Duncan, Brian & Trejo, Stephen, 2011. "Low-Skilled Immigrants and the U.S. Labor Market," IZA Discussion Papers 5964, Institute for the Study of Labor (IZA).
  8. Daniel S. Hamermesh & Stephen J. Trejo, 2010. "How Do Immigrants Spend Time?: The Process of Assimilation," NBER Working Papers 16430, National Bureau of Economic Research, Inc.
  9. Lozano, Fernando A. & Steinberger, Michael D., 2010. "Empirical Methods in the Economics of International Immigration," IZA Discussion Papers 5328, Institute for the Study of Labor (IZA).

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