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Immigrant earnings: Language skills, linguistic concentrations and the business cycle

Author

Listed:
  • Paul W. Miller

    () (University of Western Australia, Department of Economics, 35 Stirling Highway, Crawley, Western Australia 6009, Australia)

  • Barry R. Chiswick

    () (University of Illinois at Chicago, Department of Economics , S. Morgan St. 601, 60607-7121 Chicago IL, USA)

Abstract

This study of the determinants of earnings among adult foreign-born men using the 1990 Census of Population focuses on the effects of the respondent's own English language skills, the effects of living in a linguistic concentration area, and the effects of the stage of the business cycle at entry into the U.S. labor market. The analysis demonstrates the importance of English language fluency among the foreign born from non-English speaking countries. There is also strong evidence for the complementarity between language skills and other forms of human capital. Furthermore, there is strong evidence using selectivity correction techniques for the endogeneity between language and earnings.

Suggested Citation

  • Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    • Handle: RePEc:spr:jopoec:v:15:y:2002:i:1:p:31-57
    Note: Received: 30 November 1999/Accepted: 6 February 2001 received at the European Science Foundation Conference on Migration and Development, Espinoh, Portugal, April 1998, the Population Association of America Annual Meeting, New York, March 1999, the Canadian Economics Association Annual Meeting, Toronto, May 1999, the Center for Economic Policy Research Conference on Marginal Labour Markets in Metropolitan Areas, Dublin, October 1999, and the Midwest Economics Association Annual Meeting, Chicago, April 2000. Christian Dustmann's comments were especially helpful. It was written, in part, while Chiswick was the John M. Olin Visiting Professor, Center for the Study of the Economy and the State, Graduate School of Business, University of Chicago. Responsible editor: Alan Barrett.-->
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    References listed on IDEAS

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    1. Sanders Korenman & David Neumark, 1991. "Does Marriage Really Make Men More Productive?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 282-307.
    2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    3. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-288, April.
    4. Barry R. Chiswick, 1998. "Hebrew language usage: Determinants and effects on earnings among immigrants in Israel," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(2), pages 253-271.
    5. Ann P. Bartel & Marianne J. Koch, 1991. "Internal Migration of U.S. Immigrants," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 121-134, National Bureau of Economic Research, Inc.
    6. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The Labor Market Status of Immigrants: Effects of the Unemployment Rate at Arrival and Duration of Residence," ILR Review, Cornell University, ILR School, vol. 50(2), pages 289-303, January.
    7. Repetto, Gaston & Chiswick, Barry R., 2000. "Immigrant Adjustment in Israel: Literacy and Fluency in Hebrew and Earnings," IZA Discussion Papers 177, Institute of Labor Economics (IZA).
    8. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    9. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    10. Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-553, June.
    11. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    12. Evelina Tainer, 1988. "English Language Proficiency and the Determination of Earnings among Foreign-Born Men," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 108-122.
    13. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352-352.
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    More about this item

    Keywords

    Earnings; immigrants; language; business cycle; ethnic concentrations;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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