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Earnings Gap, Cohort Effect and Economic Assimilation of Immigrants from Mainland China, Hong Kong and Taiwan in the United States

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  • Lin, Carl

    ()
    (Beijing Normal University)

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Abstract

Using 1990, 2000 censuses and a 2010 survey, I examine the economic performance of ethnically Chinese immigrants from mainland China, Hong Kong and Taiwan (CHT) in the U.S. labor market. Since 1990, relative wages of CHT migrants have been escalating in contrast to other immigrants. I show these widening gaps are largely explained by individual's endowments, mostly education. Rising U.S.-earned degrees by CHT migrants can account for this relatively successful economic assimilation. Cohort analysis shows that the economic performance of CHT migrants admitted to the U.S. has been improving, even allowing for the effect of aging.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7208.

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Length: 28 pages
Date of creation: Feb 2013
Date of revision:
Publication status: published in: Review of International Economics, 2013, 21(2), 249-265
Handle: RePEc:iza:izadps:dp7208

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Keywords: synthetic cohort analysis; Oaxaca decomposition; economic assimilation; Chinese immigration;

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  1. William C. Horrace & Ronald L. Oaxaca, 2001. "Inter-industry wage differentials and the gender wage gap: An identification problem," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 611-618, April.
  2. Ugidos Olazabal, Arantza & Gardeazabal, Javier, 2002. "More on Identification on Detailed Wage Decompositions," DFAEII Working Papers 2002-17, University of the Basque Country - Department of Foundations of Economic Analysis II.
  3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(5), pages 897-921, October.
  4. Harriet Duleep & Mark Regets, 1997. "Measuring immigrant wage growth using matched CPS files," Demography, Springer, vol. 34(2), pages 239-249, May.
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  6. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  7. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers, ETH Zurich, Chair of Sociology 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
  8. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, vol. 89(2), pages 181-185, May.
  9. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  10. Gil S. Epstein & Ira N. Gang, 2010. "Migration and Culture," Working Papers 2010-17, Bar-Ilan University, Department of Economics.
  11. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 3(4), pages 463-89, October.
  12. Paul W. Miller & Barry R. Chiswick, 1999. "Language skills and earnings among legalized aliens," Journal of Population Economics, Springer, vol. 12(1), pages 63-89.
  13. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
  14. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 371-91, October.
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