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Earnings and Occupational Attainment: Immigrants and the Native Born

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Author Info
Barry R. Chiswick () (University of Illinois at Chicago and IZA)
Paul W. Miller () (University of Western Australia and IZA)

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Abstract

This paper examines the determinants of occupational attainment and the impact of occupation on earnings. Results for both the native born and foreign born are presented, and these provide insights as to the earnings penalties associated with the less-than-perfect international transferability of human capital skills. It shows that around 50 percent of the earnings gains associated with years of schooling derives from inter-occupational mobility. When occupation is held constant, there is a large increase in the effect on earnings of preimmigration labor market experience for the foreign born, but little change in either the payoff to labor market experience for the native born, or in the premium for post-arrival labor market experience for the foreign born. The estimates of the models of occupational attainment show that years of schooling, and, among the foreign born, proficiency in English, are the key factors determining access to high-paying occupations. Labor market experience has little effect on occupational outcomes among the native born. However, evaluated at 10 years, foreign labor market experience has a modest negative impact on current occupational status. Examination of this negative effect using quantile regression shows that it is concentrated among those in high status jobs.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2676.

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Length: 31 pages
Date of creation: Mar 2007
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Handle: RePEc:iza:izadps:dp2676

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Related research
Keywords: immigrants; occupation; earnings;

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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
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
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. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December. [Downloadable!] (restricted)
  2. Schmidt, Peter & Strauss, Robert P, 1975. "The Prediction of Occupation Using Multiple Logit Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 471-86, June. [Downloadable!] (restricted)
  3. Groshen, Erica L, 1991. "Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 869-84, August. [Downloadable!] (restricted)
  4. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February. [Downloadable!] (restricted)
  5. Nickell, Stephen, 1982. "The Determinants of Occupational Success in Britain," Review of Economic Studies, Blackwell Publishing, vol. 49(1), pages 43-53, January. [Downloadable!] (restricted)
  6. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Occupational attainment and segregation by sex," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 33(4), pages 506-517, July.
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Cited by:
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  1. 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:
  2. Chiswick, Barry R. & Miller, Paul W., 2008. "Occupational Attainment and Immigrant Economic Progress in Australia," IZA Discussion Papers 3316, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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