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Immigrant Earnings, Relative to What? The Importance of Earnings Function Specification and Comparison Points

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  • Yuengert, A M

Abstract

Immigrant relative earnings estimates are sensitive to the choice of comparison point and the specification of earnings. Non-sample mean comparisons (Borjas, 1985) understate relative earnings. Simple earnings specifications (linear education, quadratic experience) overstate relative earnings for both poorly and well-educated immigrants. Specifications which ignore omitted variables understate the relative earnings of poorly educated immigrants and overstate those of well-educated ones. Although measures of assimilation and changes in immigrant quality are insensitive to earnings specification, they indicate strong earnings growth for post-1964 immigrants, an overall decrease in immigrant quality, and an increase in Mexican immigrant quality. Copyright 1994 by John Wiley & Sons, Ltd.

Suggested Citation

  • Yuengert, A M, 1994. "Immigrant Earnings, Relative to What? The Importance of Earnings Function Specification and Comparison Points," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(1), pages 71-90, Jan.-Marc.
    • Handle: RePEc:jae:japmet:v:9:y:1994:i:1:p:71-90
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    Cited by:

    1. Christoph M. Schmidt & Michael Fertig, 2002. "Mobility within Europe – The Attitudes of European Youngsters," RWI Discussion Papers 0001, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    2. Roger Wilkins, 2003. "Immigrant and Native-born Earnings Distributions in Australia: 1982-1996," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 83-115, March.
    3. James Ted Mcdonald & Christopher Worswick, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 49-62, March.
    4. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    5. Derek Hum & Wayne Simpson, 2007. "The legacy of immigration: labour market performance and education in the second generation," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1985-2009.
    6. 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.
    7. Feliciano, Zadia M., 2001. "The Skill and Economic Performance of Mexican Immigrants from 1910 to 1990," Explorations in Economic History, Elsevier, vol. 38(3), pages 386-409, July.
    8. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Ahmed, Nina, 2005. "Intergenerational Impact of Immigrants' Selection and Assimilation on Health Outcomes of Children," Analytical Studies Branch Research Paper Series 2005247e, Statistics Canada, Analytical Studies Branch.
    10. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    11. Schmidt, Christoph & Fertig, Michael, 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," CEPR Discussion Papers 2803, C.E.P.R. Discussion Papers.
    12. Pokrovsky, D. & Shapoval, A., 2015. "Distribution of Entrepreneurial Skills and Migration: Employment Structure, Income Inequality, and Welfare," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 36-62.
    13. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers on Multidisciplinary Panel Data Research 30, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. repec:zbw:rwirep:0020 is not listed on IDEAS
    15. repec:zbw:rwidps:0001 is not listed on IDEAS
    16. Tremblay, Rodrigue, 1998. "Mobilité internationale des facteurs de production en situation de chômage et de libre-échange," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(2), pages 245-271, juin.
    17. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56, National Bureau of Economic Research, Inc.
    18. Fertig, Michael & Schmidt, Christoph M., 2002. "Mobility within Europe – What do we (still not) know?," IZA Discussion Papers 447, Institute of Labor Economics (IZA).
    19. Barry R. Chiswick & Anh T. Le & Paul W. Miller, 2008. "How Immigrants Fare across the Earnings Distribution in Australia and the United States," ILR Review, Cornell University, ILR School, vol. 61(3), pages 353-373, April.
    20. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 135-168, June.
    21. Michael Fertig & Stefanie Schurer, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    22. Kristin F. Butcher & John Dinardo, 2002. "The Immigrant and Native-Born Wage Distributions: Evidence from United States Censuses," ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.

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