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Immigrant Earnings Adjustment: The Impact of Age at Migration

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  • Roger Wilkins

Abstract

Human capital theory, in conjunction with Chiswick's (1978) and Borjas’ (1998) work, implies the post‐migration path of immigrant earnings is likely to depend on the age at migration. An adaptation of Borjas’ (1998) model of immigrant wage determination is presented which predicts, for a given stock of human capital at the point of migration, lower initial earnings for younger arrivals, but faster earnings growth with time in the destination country. Empirical tests on data for Australian immigrants provide qualified support for the hypothesis that initial wages are, ceteris paribus, increasing in age at migration and the rate of wage growth is decreasing in age at migration.

Suggested Citation

  • Roger Wilkins, 2003. "Immigrant Earnings Adjustment: The Impact of Age at Migration," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 292-315, September.
    • Handle: RePEc:bla:ausecp:v:42:y:2003:i:3:p:292-315
    DOI: 10.1111/1467-8454.00200
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    References listed on IDEAS

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    1. George J. Borjas, 2000. "The Economic Progress of Immigrants," NBER Chapters, in: Issues in the Economics of Immigration, pages 15-50, National Bureau of Economic Research, Inc.
    2. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    3. Will, L., 1996. "Immigrant Earnings Change: The Importance of Australian Schooling," CEPR Discussion Papers 340, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1066-1099, November.
    5. Chapmen, B.J. & Iredale, R.R., 1990. "Immigrant Qualifications: Recognition And Relative Wage Output," CEPR Discussion Papers 240, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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    1. Gustafsson, Björn Anders & Mac Innes, Hanna & Österberg, Torun, 2016. "Age at Immigration Matters for Labor Market Integration: The Swedish Example," IZA Discussion Papers 10423, Institute of Labor Economics (IZA).
    2. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    3. Bjorn Anders Gustafsson & Hanna Mac Innes & Torun Österberg, 2017. "Age at immigration matters for labor market integration—the Swedish example," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-23, December.
    4. Mosfequs Salehin & Robert Breunig, 2012. "The immigrant wage gap and assimilation in Australia: the impact of unobserved heterogeneity," CEPR Discussion Papers 661, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. Robert Breunig & Syed Hasan & Mosfequs Salehin, 2013. "The Immigrant Wage Gap and Assimilation in Australia: Does Unobserved Heterogeneity Matter?," The Economic Record, The Economic Society of Australia, vol. 89(287), pages 490-507, December.

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