Reward for being an immigrant: Earnings gap between immigrant and native-born West Indians
Motivated by recent findings of a diminishing earnings gap between the West Indians and other black workers, this study examines the earnings processes of immigrant and native-born West Indians in an effort to find the role of culture traits in their earnings. The decomposition of the earnings difference between immigrant and native-born West Indians indicates that a significant amount of the gap is unexplained by the observable labor market characteristics. Most of the observable human capital endowments of the immigrants are treated unfavorably by the market compared to those of the native-born West Indians. The earnings advantage of immigrants attributable to unobserved factors, however, turns out to be more than sufficient to overcome their market treatment adversity. Copyright International Atlantic Economic Society 1998
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Volume (Year): 26 (1998)
Issue (Month): 3 (September)
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- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
- Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
- Chiswick, Barry R, 1986. "Is the New Immigration Less Skilled Than the Old?," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 168-92, April.
- Stephen A. Woodbury, 1993. "Culture, Human Capital, and the Earnings of West Indian Blacks," Upjohn Working Papers and Journal Articles 93-20, W.E. Upjohn Institute for Employment Research.
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