The Absorption of Highly Skilled Immigrants: Israel, 1990 - 1995
AbstractThis paper develops a descriptive methodology for the analysis of wage growth of immigrants, based on human capital theory. The sources of the wage growth are: (i) the rise of the return to imported human capital; (ii) the impact of accumulated experience in the host country; and (iii) the mobility up the occupational ladder in the host country. We formulate a non-linear model which is estimated, using repeated cross-section data. Using data on immigrants from the former Soviet Union to Israel, we find that upon arrival, immigrants receive no return for imported skills. In the five years following arrival, wages of highly skilled immigrants grow at 8.13% a year. Rising prices of skills, occupational transitions, accumulated experience in Israel, economy-wide rise in wages and repeated sampling account for 4.3, 3.1, 1.6, 1.2 and 2% each. There is convergence to natives in the occupational distribution, but not in wages. In the long run, the return for schooling converges to 0.044 and 0.027 for immigrants in high- and low-skill occupations, respectively, substantially below the 0.073 for natives. The return for experience converges to that of Israelis, and immigrants receive higher return for their unmeasured skills.
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Bibliographic InfoPaper provided by Chicago - Center for Study of Economy and State in its series University of Chicago - George G. Stigler Center for Study of Economy and State with number 140.
Date of creation: 1998
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Other versions of this item:
- Eckstein, Z. & Weiss, Y., 1998. "The Absorption of Highly Skilled Immigrants: Israel, 1990-1995," Papers 03-98, Tel Aviv.
- Eckstein, Zvi & Weiss, Yoram, 1998. "The Absorption of Highly-Skilled Immigrants: Israel, 1990-1995," CEPR Discussion Papers 1853, C.E.P.R. Discussion Papers.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
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- Yamauchi, Futoshi, 2003.
"Are experience and schooling complementary?,"
FCND discussion papers
166, International Food Policy Research Institute (IFPRI).
- Chiswick, Barry R. & Repetto, Gaston, 2000. "Immigrant Adjustment in Israel: Literacy and Fluency in Hebrew and Earnings," IZA Discussion Papers 177, Institute for the Study of Labor (IZA).
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