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Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the Labour Force Survey

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  • Ken Clark
  • Joanne Kathryn Lindley

    () (Department of Economics, The University of Sheffield)

Abstract

We estimate models of earnings and employment outcomes for a sample of white and non-white male immigrants drawn from the Labour Force Survey between 1993 and 2002. Two hypotheses are investigated: (i) whether immigrant outcomes assimilate towards those of natives and (ii) whether labour market conditions at time of entry to the UK labour market have a permanent impact on outcomes. We find positive earnings assimilation for all immigrant groups and strong employment assimilation for those immigrants who complete their education in the UK. We find negative employment assimilation for South Asian immigrants who completed their education overseas. There is some evidence of unemployment rates at time of entry to the labour market causing permanently lower earnings for non-white immigrants.

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File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005004.pdf
File Function: First version, 2005
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File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005004.pdf
File Function: Revised version, 2005
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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2005004.

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Length: 44 pages
Date of creation: Jan 2005
Date of revision: Jan 2005
Handle: RePEc:shf:wpaper:2005004

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Related research

Keywords: Immigrants; assimiation; earnings; employment.;

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References

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  1. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The labor market status of immigrants: Effects of the unemployment rate at arrival and duration of residence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(2), pages 289-303, January.
  2. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," IZA Discussion Papers 156, Institute for the Study of Labor (IZA).
  3. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57.
  4. 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.
  5. 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.
  6. Tim Hatton, 2004. "Explaining Trends in UK Immigration," ANU Working Papers in Economics and Econometrics 2004-440, Australian National University, College of Business and Economics, School of Economics.
  7. 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.
  8. Antecol, Heather & Kuhn, Peter J. & Trejo, Stephen, 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA).
  9. Dustmann, C. & Fabbri, F. & Preston, I. & Wadsworth, J., 2003. "Labour market performance of immigrants in the UK labour market," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
  10. Kapteyn, Arie & Alessie, Rob & Lusardi, Annamaria, 2005. "Explaining the wealth holdings of different cohorts: Productivity growth and Social Security," European Economic Review, Elsevier, vol. 49(5), pages 1361-1391, July.
  11. Michael Shields & Stephen Wheatley Price, 1998. "The earnings of male immigrants in England: evidence from the quarterly LFS," Applied Economics, Taylor and Francis Journals, vol. 30(9), pages 1157-1168.
  12. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
  13. Stephen Wheatley Price, 2001. "The unemployment experience of male immigrants in England," Applied Economics, Taylor and Francis Journals, vol. 33(2), pages 201-215.
  14. Lindley, Joanne, 2002. "The English Language Fluency and Earnings of Ethnic Minorities in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(4), pages 467-87, September.
  15. Arulampalam, Wiji, 2000. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," IZA Discussion Papers 189, Institute for the Study of Labor (IZA).
  16. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  17. Chiswick, Barry R, 1980. "The Earnings of White and Coloured Male Immigrants in Britain," Economica, London School of Economics and Political Science, vol. 47(185), pages 81-87, February.
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Citations

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Cited by:
  1. Lindley, Joanne, 2009. "The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey," Economics of Education Review, Elsevier, vol. 28(1), pages 80-89, February.
  2. repec:ese:iserwp:2009-31 is not listed on IDEAS
  3. Joanne Kathryn Lindley & Pamela Lenton, 2006. "The Over-Education of UK Immigrants: Evidence from the Labour Force Survey," Working Papers 2006001, The University of Sheffield, Department of Economics, revised Jan 2006.
  4. de la Rica, Sara, 2009. "The Effect of the 2004 and 2007 EU Enlargement on the Spanish Labour Market," IZA Discussion Papers 4104, Institute for the Study of Labor (IZA).
  5. Averett, Susan L. & Argys, Laura & Kohn, Jennifer L., 2012. "Immigration, Obesity and Labor Market Outcomes in the UK," IZA Discussion Papers 6454, Institute for the Study of Labor (IZA).

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