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A Joint Hazard-Longitudinal Model of the Timing of Migration, Immigrant Quality, and Labor Market Assimilation

Listed author(s):
  • Jain, Apoorva

    (University of North Carolina, Chapel Hill)

  • Peter, Klara Sabirianova

    ()

    (University of North Carolina, Chapel Hill)

Registered author(s):

    This paper develops and estimates a joint hazard-longitudinal (JHL) model of the timing of migration and labor market assimilation – two processes that have been assumed to be independent in the existing literature. The JHL model accounts for the endogenous age of entry in estimating the returns to years since migration by allowing cross-equation correlations of random intercepts with individual rates of wage assimilation. Commonly ignored sample selection issues due to non-random survey attrition and missing wages are also addressed. Using German household panel surveys from 1984 to 2014 and home country-level data from 1961, we find large upward bias in the OLS-estimated average rate of wage assimilation. Our estimates suggest that immigrants with lower unobserved skills and with a higher unobserved propensity to migrate early have a faster assimilation rate.

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    File URL: http://ftp.iza.org/dp10887.pdf
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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10887.

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    Length: 66 pages
    Date of creation: Jul 2017
    Handle: RePEc:iza:izadps:dp10887
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    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. Esteban Sanromá & Raúl Ramos & Hipólito Simón, 2015. "How relevant is the origin of human capital for immigrant wages? Evidence from Spain," Journal of Applied Economics, Universidad del CEMA, vol. 18, pages 149-172, May.
    3. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, 07.
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    5. Basilio, Leilanie & Bauer, Thomas K. & Sinning, Mathias, 2009. "Analyzing the labor market activity of immigrant families in Germany," Labour Economics, Elsevier, vol. 16(5), pages 510-520, October.
    6. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Christopher R. Bollinger & Barry T. Hirsch, 2006. "Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 483-520, July.
    8. Bernt Bratsberg & Erling Barth & Oddbjørn Raaum, 2006. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 243-263, May.
    9. Hoyt Bleakley & Aimee Chin, 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 481-496, May.
    10. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 201-245, April.
    11. repec:zbw:rwirep:0020 is not listed on IDEAS
    12. N. Pantazis & G. Touloumi & A. S. Walker & A. G. Babiker, 2005. "Bivariate modelling of longitudinal measurements of two human immunodeficiency type 1 disease progression markers in the presence of informative drop-outs," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 54(2), pages 405-423.
    13. George J. Borjas, 2015. "The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again," Journal of Human Capital, University of Chicago Press, vol. 9(4), pages 483-517.
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