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Endogenous Assimilation and Immigrant Adjustment in Longitudinal Data

  • Beenstock, Michael

    ()

    (Hebrew University, Jerusalem)

  • Chiswick, Barry R.

    ()

    (George Washington University)

  • Paltiel, Ari

    ()

    (affiliation not available)

We create a longitudinal data set by matching immigrants in Israel's censuses for 1983 and 1995. These panel data reject the Immigrant Assimilation Hypothesis (IAH), which predicts that immigrants with shorter durations in 1983 should have experienced faster earnings growth between 1983 and 1995. By contrast, IAH is corroborated by the synthetic cohort methodology (SCM) over the same period. We suggest that SCM is subject to survivor bias, which increases the apparent degree of assimilation. We show that since the return to destination-specific skills increased during this period because of the very large immigration, the assimilation curve changed its shape in a way that made it difficult to estimate even using panel data.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1840.

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Length: 37 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1840
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  1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  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. Horowitz, J.L. & Manski, C.F., 1995. "Censoring of Outcomes and Regressors Due to Survey Nonresponse: Identification and Estimation Using Weights and Imputations," Working papers 9525, Wisconsin Madison - Social Systems.
  4. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," IZA Discussion Papers 452, Institute for the Study of Labor (IZA).
  5. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  6. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January.
  7. Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
  8. Eckstein, Z. & Weiss, Y., 1999. "The Integration of Immigrants from the Former Soviet Union in the Israeli Labor Market," Papers 33-99, Tel Aviv.
  9. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 21-37, January.
  10. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2005. "Immigrant Earnings: A Longitudinal Analysis," IZA Discussion Papers 1750, Institute for the Study of Labor (IZA).
  11. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
  12. Rachel M. Friedberg, 1996. "You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital," NBER Working Papers 5837, National Bureau of Economic Research, Inc.
  13. Chiswick, Carmel U. & Chiswick, Barry R. & Karras, Georgios, 1992. "The impact of immigrants on the macroeconomy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 279-316, December.
  14. 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 168-92, April.
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