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Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States

Author

Listed:
  • Heather Antecol

    (Department of Economics, Claremont McKenna College)

  • Peter Kuhn

    (Department of Economics, University of California)

  • Stephen Trejo

    (Department of Economics, University of Texas)

Abstract

Using 1980/81 and 1990/91 census data from Australia, Canada, and the United States, we estimate the effects of time in the destination country on male immigrants' wages, employment, and earnings. We find that total earnings assimilation is greatest in the United States and least in Australia. Employment assimilation explains all of the earnings progress experienced by Australian immigrants, whereas wage assimilation plays the dominant role in the United States, and Canada falls in-between. We argue that relatively inflexible wages and generous unemployment insurance in countries like Australia may cause assimilation to occur along the "quantity" rather than the price dimension.

Suggested Citation

  • Heather Antecol & Peter Kuhn & Stephen Trejo, 2006. "Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States," RF Berlin - CReAM Discussion Paper Series 0603, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
  • Handle: RePEc:crm:wpaper:0603
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