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Reward for being an immigrant: Earnings gap between immigrant and native-born West Indians

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  • B. Philip Jeon
  • Walter Simmons

Abstract

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

Suggested Citation

  • B. Philip Jeon & Walter Simmons, 1998. "Reward for being an immigrant: Earnings gap between immigrant and native-born West Indians," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(3), pages 309-316, September.
    • Handle: RePEc:kap:atlecj:v:26:y:1998:i:3:p:309-316
    DOI: 10.1007/BF02299348
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    References listed on IDEAS

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    1. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. 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.
    4. 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 168-192, April.
    5. Stephen A. Woodbury, 1993. "Culture, Human Capital, and the Earnings of West Indian Blacks," Upjohn Working Papers 93-20, W.E. Upjohn Institute for Employment Research.
    6. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    7. 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.
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    Cited by:

    1. Simmons, Walter O., 2003. "The black earnings gap: discrimination or culture," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(6), pages 647-655.

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