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Immigrant Heterogeneity and the Earnings Distribution in the United Kingdom and United States: New Evidence from a Panel Data Quantile Regression Analysis

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Listed:
  • Billger, Sherrilyn M.

    () (Illinois State University)

  • Lamarche, Carlos

    () (University of Kentucky)

Abstract

In this paper we use a relatively new panel data quantile regression technique to examine native-immigrant earnings differentials 1) throughout the conditional wage distribution, and 2) controlling for individual heterogeneity. No previous papers have simultaneously considered these factors. We focus on both women and men, using longitudinal data from the PSID and the BHPS. We show that country of origin, country of residence, and gender are all important determinants of the earnings differential. For instance, a large wage penalty occurs in the U.S. among female immigrants from non-English speaking countries, and the penalty is most negative among the lowest (conditional) wages. On the other hand, women in Britain experience hardly any immigrant-native wage differential. We find evidence suggesting that immigrant men in the U.S. and the U.K. earn lower wages, but the most significant results are found for British workers emigrating from non-English speaking countries. The various differentials we report in this paper reveal the value of combining quantile regression with controls for individual heterogeneity in better understanding immigrant wage effects.

Suggested Citation

  • Billger, Sherrilyn M. & Lamarche, Carlos, 2010. "Immigrant Heterogeneity and the Earnings Distribution in the United Kingdom and United States: New Evidence from a Panel Data Quantile Regression Analysis," IZA Discussion Papers 5260, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5260
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    Cited by:

    1. Budría, Santiago & Swedberg, Pablo & Fonseca, Marlene, 2016. "Returns to Schooling among Immigrants in Spain: A Quantile Regression Approach," IZA Discussion Papers 10064, Institute for the Study of Labor (IZA).
    2. Pablo Swedberg & Santiago Budria, 2015. "Education and earnings: how immigrants perform across the earnings distribution in Spain," Investigaciones de Economía de la Educación volume 10,in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 42, pages 829-842 Asociación de Economía de la Educación.
    3. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0094-2 is not listed on IDEAS

    More about this item

    Keywords

    quantile regression; earnings; immigrants; panel data;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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