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Immigrant Earnings Assimilation in the United States: A Panel Analysis

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  • Deborah Rho
  • Seth Sanders

Abstract

We construct the first long-term comparison of cross-sectional and panel estimates of immigrant earnings assimilation in the United States from a single data source. Unlike previous results, we find that selective out-migration of higher-earning immigrants biases downward cross-sectional estimates for all education groups. Cross-sectional estimates dramatically understate earnings growth for high-skilled foreign-born workers. The bias stems from both selective out-migration and selective employment; among high-skilled immigrants, low earners find employment with a substantial delay, while high earners work immediately on arrival. We present suggestive evidence that the H-1B visa program may play a role in estimated immigrant earnings dynamics.

Suggested Citation

  • Deborah Rho & Seth Sanders, 2021. "Immigrant Earnings Assimilation in the United States: A Panel Analysis," Journal of Labor Economics, University of Chicago Press, vol. 39(1), pages 37-78.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/708615
    DOI: 10.1086/708615
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    Cited by:

    1. Arellano-Bover, Jaime & San, Shmuel, 2023. "The Role of Firms and Job Mobility in the Assimilation of Immigrants: Former Soviet Union Jews in Israel 1990–2019," IZA Discussion Papers 16389, Institute of Labor Economics (IZA).
    2. Glitz, Albrecht & Albert, Christoph & Llull, Joan, 2021. "Labor Market Competition and the Assimilation of Immigrants," CEPR Discussion Papers 16432, C.E.P.R. Discussion Papers.

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