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Endogenous Assimilation and Immigrant Adjustment in Longitudinal Data

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Author Info
Michael Beenstock () (Hebrew University of Jerusalem)
Barry R. Chiswick () (University of Illinois at Chicago and IZA Bonn)
Ari Paltiel () (Central Bureau of Statistics, Israel)

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Abstract

We create a longitudinal data set by matching immigrants in Israel’s censuses for 1983 and 1995. These panel data reject the Immigrant Assimilation Hypothesis (IAH), which predicts that immigrants with shorter durations in 1983 should have experienced faster earnings growth between 1983 and 1995. By contrast, IAH is corroborated by the synthetic cohort methodology (SCM) over the same period. We suggest that SCM is subject to survivor bias, which increases the apparent degree of assimilation. We show that since the return to destination-specific skills increased during this period because of the very large immigration, the assimilation curve changed its shape in a way that made it difficult to estimate even using panel data.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1840.

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Length: 37 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1840

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Related research
Keywords: immigrants; assimilation; panel data;

Other versions of this item:

Find related papers by JEL classification:
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
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chiswick, Carmel U. & Chiswick, Barry R. & Karras, Georgios, 1992. "The impact of immigrants on the macroeconomy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 279-316, December. [Downloadable!] (restricted)
  2. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May. [Downloadable!] (restricted)
  3. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January. [Downloadable!] (restricted)
  4. Horowitz, Joel L. & Manski, Charles F., 1998. "Censoring of outcomes and regressors due to survey nonresponse: Identification and estimation using weights and imputations," Journal of Econometrics, Elsevier, vol. 84(1), pages 37-58, May. [Downloadable!] (restricted)
    Other versions:
  5. 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)
  6. 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. [Downloadable!] (restricted)
  7. Eckstein, Z. & Weiss, Y., 1999. "The Integration of Immigrants from the Former Soviet Union in the Israeli Labor Market," Papers 33-99, Tel Aviv.
  8. Chiswick, Barry R, 1986. "Is the New Immigration Less Skilled Than the Old?," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 168-92, April. [Downloadable!] (restricted)
  9. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Oxford University Press, vol. 27(1), pages 21-37, January.
  10. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-51, April. [Downloadable!] (restricted)
    Other versions:
  11. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," IZA Discussion Papers 452, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. repec:att:wimass:199525 is not listed on IDEAS
  13. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  14. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, Blackwell Publishing, vol. 51(4), pages 485-503, December. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fernandez, Cristina & Ortega, Carolina, 2006. "Labour market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," IESE Research Papers D/644, IESE Business School. [Downloadable!]
    Other versions:
  2. Juan J. Dolado & Pablo Vázquez & Varios Autores, 2008. "Ensayos sobre los efectos económicos de la inmigración en España," Economic Reports 01-08, FEDEA. [Downloadable!]
  3. Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2008. "Language Usage, Participation, Employment and Earnings: Evidence for Foreigners in West Germany with Multiple Sources of Selection," ZEW Discussion Papers 08-090, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  4. Florence Kondylis, 2007. "Conflict-Induced Displacement and Labour Market Outcomes: Evidence from Post-War Bosnia and Herzegovina," CEP Discussion Papers dp0777, Centre for Economic Performance, LSE. [Downloadable!]
  5. Cristina Fernández & Carolina Ortega, 2008. "Labor market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," Spanish Economic Review, Springer, vol. 10(2), pages 83-107, June. [Downloadable!] (restricted)
  6. Aleksynska, Mariya, 2007. "Civic Participation of Immigrants: Culture Transmission and Assimilation," MPRA Paper 4594, University Library of Munich, Germany. [Downloadable!]
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