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Immigration and occupational comparative advantage

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  • Hanson, Gordon
  • Liu, Chen

Abstract

Job selection by high-skilled foreign-born workers in the US correlates strongly with country of origin. We use a Fréchet-Roy model of occupational choice to evaluate the causes of immigrant sorting. We find that revealed comparative advantage in the US is stronger for workers from countries with higher education quality in occupations that are more intensive in cognitive reasoning, and for workers from countries that are more linguistically similar to the US in occupations that are more intensive in communication. Our findings hold for immigrants who arrived in the US at age 18 or older (who received their K-12 education abroad) but not for immigrants who arrived in the US as children (who received their K-12 education domestically). We obtain similar results for immigrant sorting in Canada, consistent with origin-country education quality, rather than US immigration policy, being what drives sorting patterns.

Suggested Citation

  • Hanson, Gordon & Liu, Chen, 2023. "Immigration and occupational comparative advantage," Journal of International Economics, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:inecon:v:145:y:2023:i:c:s0022199623000958
    DOI: 10.1016/j.jinteco.2023.103809
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    Cited by:

    1. Gawai, Vikas PD & Foltz, Jeremy D., 2023. "Discrimination in Science: Salaries of Foreign and US Born Land-Grant University Scientists," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322134, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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