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How Immigrants Fare Across the Earnings Distribution: International Analyses

Author

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  • Chiswick, Barry R.

    () (George Washington University)

  • Le, Anh T.

    () (Curtin University)

  • Miller, Paul W.

    (Curtin University)

Abstract

This paper applies the quantile regression methodology to the study of the determinants of the distribution of earnings among the native born and immigrants in the United States and Australia. The analysis for immigrants is performed separately for those from English-speaking and non-English speaking origins. Using Census data, the quantile regressions permit the measurement of the partial effect of explanatory variables (such as schooling and experience) and the native born-immigrant earnings differential at the different deciles of the earnings distribution. Among other findings, the effects on earnings of schooling and labor market experience are shown to increase at higher deciles. The native-immigrant earnings gap varies by decile, and in particular increases in the U.S. at higher deciles. Minimum wages in the U.S. appear to compress earnings at low deciles, while the Australian minimum (administered) wage system appears to compress earnings across the distribution of earnings.

Suggested Citation

  • Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2405
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Pia M. Orrenius & Madeline Zavodny, 2008. "The Effect of Minimum Wages on Immigrants' Employment and Earnings," ILR Review, Cornell University, ILR School, vol. 61(4), pages 544-563, July.
    2. Ortega, Ana Carolina & Jimeno, Juan F. & Carrasco, Raquel, 2008. "The impact of immigration on the wage structure : Spain 1995-2002," UC3M Working papers. Economics we080603, Universidad Carlos III de Madrid. Departamento de Economía.
    3. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
    4. Kahanec, Martin & Zimmermann, Klaus F, 2008. "Migration, the Quality of the Labour Force and Economic Inequality," CEPR Discussion Papers 6899, C.E.P.R. Discussion Papers.
    5. Hunt, Priscillia, 2008. "Are immigrants so stuck to the floor that the ceiling is irrelevant?," The Warwick Economics Research Paper Series (TWERPS) 838, University of Warwick, Department of Economics.
    6. James T. Bang & Aniruddha Mitra, 2009. "Brain Drain and Institutions of Governance: Educational Attainment of Immigrants to the US 1988-2000," Middlebury College Working Paper Series 0919, Middlebury College, Department of Economics.
    7. Fernando A. Lozano & Michael D. Steinberger, 2012. "Empirical Methods in the Economics of International Immigration," Chapters,in: Handbook of Research Methods in Migration, chapter 8 Edward Elgar Publishing.
    8. Dipanwita Sarkar & Michael Kidd, 2016. "The impact of endogenous occupational attainment on native-migrant wage distributions," QuBE Working Papers 042, QUT Business School.
    9. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
    10. Bang, James T. & Mitra, Aniruddha, 2011. "Brain drain and institutions of governance: Educational attainment of immigrants to the US 1988-1998," Economic Systems, Elsevier, vol. 35(3), pages 335-354, September.
    11. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, March.
    12. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
    13. Catalina Franco Buitrago, 2010. "Latin American Immigration in the United States: Is There Wage Assimilation Across the Wage Distribution?," ARCHIVOS DE ECONOMÍA 006447, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    14. Carlo Dell’Aringa & Claudio Lucifora & Laura Pagani, 2015. "Earnings differentials between immigrants and natives: the role of occupational attainment," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.

    More about this item

    Keywords

    quantile regression; rates of return; immigrants; earnings distributions;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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