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Immigrant Earnings: A Longitudinal Analysis

Author

Listed:
  • Chiswick, Barry R.

    (George Washington University)

  • Lee, Yew Liang

    (University of Western Australia)

  • Miller, Paul W.

    (Curtin University)

Abstract

This paper uses the Longitudinal Survey of Immigrants to Australia to analyze the determinants of the level and growth in earnings of adult male immigrants in their first 3.5 years in Australia. The theoretical framework is based on the immigrant adjustment model, which incorporates both the transferability of immigrant skills and selectively in migration. The cross-sectional and longitudinal analyses generate similar findings. The level and relative growth of earnings are higher for immigrants with higher levels of skill and who are economic/skills tested migrants, as distinct from family based and refugee migrants. The analysis indicates that immigrant economic assimilation does occur and that in these data the cross-section provides a good estimate of the longitudinal progress of immigrants. The findings are robust across statistical techniques.

Suggested Citation

  • Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2005. "Immigrant Earnings: A Longitudinal Analysis," IZA Discussion Papers 1750, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1750
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    References listed on IDEAS

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    1. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52, March.
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    4. Miller, Paul W, 1989. "Low-Wage Youth Employment: A Permanent or Transitory State?," The Economic Record, The Economic Society of Australia, vol. 65(189), pages 126-135, June.
    5. William Fellner, 1979. "Contemporary Economic Problems, 1979," Books, American Enterprise Institute, number 918293, September.
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    8. Turkington, Darrell A, 1985. "A Note on Two-Stage Least Squares, Three-Stage Least Squares, and Maximum Likelihood Estimation in an Expectations Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 507-510, June.
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    12. 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.
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    More about this item

    Keywords

    Australia; longitudinal survey; inertia model; immigrants; wages;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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