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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. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University of South Australia 2003.

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
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    Cited by:

    1. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    2. 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.
    3. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0087-1 is not listed on IDEAS
    4. 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 for the Study of Labor (IZA).

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