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The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again

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  • George J. Borjas

Abstract

This paper examines the evolution of immigrant earnings in the United States between 1970 and 2010. There are cohort effects not only in wage levels, with more recent cohorts having lower entry wages through 1990, but also in the rate of wage growth, with more recent cohorts experiencing less economic assimilation. The slowdown in assimilation is partly related to a concurrent decline in the rate at which the new immigrants add to their human capital stock, as measured by English language proficiency. The data also suggest that the rate of economic assimilation is significantly lower for larger national origin groups.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19116.

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Date of creation: Jun 2013
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Handle: RePEc:nbr:nberwo:19116

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  1. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 201-45, April.
  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.
  3. Robert F. Schoeni, 1997. "New Evidence on the Economic Progress of Foreign-Born Men in the 1970s and 1980s," Journal of Human Resources, University of Wisconsin Press, vol. 32(4), pages 683-740.
  4. Heather Antecol & Peter Kuhn & Stephen Trejo, 2006. "Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States," CReAM Discussion Paper Series 0603, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 352.
  6. Darren Lubotsky, 2011. "The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 59-71, February.
  7. George J. Borjas, 2000. "Introduction to "Issues in the Economics of Immigration"," NBER Chapters, in: Issues in the Economics of Immigration, pages 1-14 National Bureau of Economic Research, Inc.
  8. Harriet Duleep & Daniel Dowhan, 2002. "Insights from longitudinal data on the earnings growth of U.S. foreign-born men," Demography, Springer, vol. 39(3), pages 485-506, August.
  9. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
  10. George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," NBER Working Papers 15406, National Bureau of Economic Research, Inc.
  11. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
  12. Lubotsky, D., 2000. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Papers, Princeton, Woodrow Wilson School - Development Studies 195, Princeton, Woodrow Wilson School - Development Studies.
  13. Green, David A, 1999. "Immigrant Occupational Attainment: Assimilation and Mobility over Time," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(1), pages 49-79, January.
  14. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "A Nation of Immigrants: Assimilation and Economic Outcomes in the Age of Mass Migration," NBER Working Papers 18011, National Bureau of Economic Research, Inc.
  15. Edward Funkhouser & Stephen J. Trejo, 1995. "The labor market skills of recent male immigrants: Evidence from the Current Population Survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 792-811, July.
  16. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, 03.
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  18. George J. Borjas, 2000. "Issues in the Economics of Immigration," NBER Books, National Bureau of Economic Research, Inc, number borj00-1, Ekim.
  19. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
  20. Ingo Eduard Isphording & Sebastian Otten, 2013. "The Costs of Babylon—Linguistic Distance in Applied Economics," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 354-369, 05.
  21. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 12(3), pages 369-405, July.
  22. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, Ekim.
  23. 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.
  24. Chiswick, Barry R, 1986. "Is the New Immigration Less Skilled Than the Old?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 4(2), pages 168-92, April.
  25. Michael Beenstock & Barry Chiswick & Ari Paltiel, 2010. "Testing the immigrant assimilation hypothesis with longitudinal data," Review of Economics of the Household, Springer, vol. 8(1), pages 7-27, March.
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Cited by:
  1. Sweetman, A. & Ours, J.C. van, 2014. "Immigration: What About the Children and Grandchildren?," Discussion Paper, Tilburg University, Center for Economic Research 2014-009, Tilburg University, Center for Economic Research.
  2. Al?cia Adser? & Ana M. Ferrer, 2014. "The Myth of Immigrant Women as Secondary Workers: Evidence from Canada," American Economic Review, American Economic Association, vol. 104(5), pages 360-64, May.
  3. Francine D. Blau & Lawrence Kahn, 2013. "Immigration and the Distribution of Incomes," CESifo Working Paper Series 4561, CESifo Group Munich.
  4. Prummer, Anja & Siedlarek, Jan-Peter, 2014. "Institutions And The Preservation Of Cultural Traits," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 470, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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