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Immigrant Wage Assimilation and the Return to Foreign and Host-Country Sources of Human Capital

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  • Skuterud, Mikal
  • Su, Mingcui

Abstract

We compare predicted relative immigrant wage profiles based on returns to YSM and to foreign and host-country sources of schooling and experience. We find the biases inherent in inferring assimilation from a return to YSM appear more substantial than those emanating from the assumptions necessary to estimate foreign and host-country returns directly using standard data sources. Given the policy relevance of allowing entry effects and subsequent wage growth to depend on the foreign human capital immigrants bring and their post-migration schooling and work decisions, our findings suggest the predominance of YSM models in the literature is not well founded.

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Bibliographic Info

Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2009-38.

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Length: 46 pages
Date of creation: 26 Jun 2009
Date of revision: 26 Jun 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-38

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Web page: http://www.clsrn.econ.ubc.ca/

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Keywords: Immigrant workers; wage differentials; human capital;

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References

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  1. Edin, Per-Anders & LaLonde, Robert J. & Åslund, Olof, 2000. "Emigration of Immigrants and Measures of Immigrant Assimilation: Evidence from Sweden," Working Paper Series 2000:13, Uppsala University, Department of Economics.
  2. David A. Green & Christopher Worswick, 2004. "Immigrant earnings profiles in the presence of human capital investment: measuring cohort and macro effects," IFS Working Papers W04/13, Institute for Fiscal Studies.
  3. Khan, Aliya Hashmi, 1997. "Post-migration investment in education by immigrants in the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 285-313.
  4. Bernt Bratsberg & James F. Ragan Jr., 2002. "The Impact of Host-Country Schooling on Earnings: A Study of Male Immigrants in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 63-105.
  5. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January.
  6. Deborah Cobb-Clark & Marie Connolly & Christopher Worswick, 2005. "Post-migration investments in education and job search: a family perspective," Journal of Population Economics, Springer, vol. 18(4), pages 663-690, November.
  7. Lubotsky, D., 2000. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Papers 195, Princeton, Woodrow Wilson School - Development Studies.
  8. Harriet Duleep & Mark Regets, 1997. "Measuring immigrant wage growth using matched CPS files," Demography, Springer, vol. 34(2), pages 239-249, May.
  9. Frank Tubergen & Herman Werfhorst, 2007. "Postimmigration investments in Education: a Study of Immigrants in the Netherlands," Demography, Springer, vol. 44(4), pages 883-898, November.
  10. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
  11. Derek Hum & Wayne Simpson, 2003. "Job-Related Training Activity by Immigrants to Canada," Canadian Public Policy, University of Toronto Press, vol. 29(4), pages 469-489, December.
  12. Abdurrahman Aydemir & Mikal Skuterud, 2008. "The Immigrant Wage Differential within and across Establishments," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(3), pages 334-352, April.
  13. Chiswick, Barry R. & Miller, Paul W., 1994. "The determinants of post-immigration investments in education," Economics of Education Review, Elsevier, vol. 13(2), pages 163-177, June.
  14. 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.
  15. George J. Borjas, 1982. "The earnings of male hispanic immigrants in the United States," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 343-353, April.
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Cited by:
  1. Christian Dustmann & Joseph-Simon Görlach, 2014. "Selective Outmigration and the Estimation of Immigrants' Earnings Profiles," CESifo Working Paper Series 4617, CESifo Group Munich.
  2. Garnett Picot & Patrizio Piraino, 2013. "Immigrant earnings growth: selection bias or real progress?," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1510-1536, November.

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