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The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again

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  • George J. Borjas

Abstract

This paper examines the evolution of immigrant earnings in the United States between 1970 and 2010. There are cohort effects not only in wage levels, with more recent cohorts having lower entry wages through 1990, but also in the rate of wage growth, with more recent cohorts experiencing less economic assimilation. The slowdown in assimilation is partly related to a concurrent decline in the rate at which the new immigrants add to their human capital stock, as measured by English language proficiency. The data also suggest that the rate of economic assimilation is significantly lower for larger national origin groups.

Suggested Citation

  • George J. Borjas, 2013. "The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again," NBER Working Papers 19116, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:19116
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    References listed on IDEAS

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    1. George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," Working Papers 2009-13, Brown University, Department of Economics.
    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. 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 463-489, October.
    4. Darren Lubotsky, 2011. "The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 59-71, February.
    5. George J. Borjas, 2000. "Issues in the Economics of Immigration," NBER Books, National Bureau of Economic Research, Inc, number borj00-1.
    6. Darren Lubotsky, 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 820-867, October.
    7. Harriet Duleep & Daniel Dowhan, 2002. "Insights from longitudinal data on the earnings growth of U.S. foreign-born men," Demography, Springer;Population Association of America (PAA), vol. 39(3), pages 485-506, August.
    8. Heather Antecol & Peter Kuhn & Stephen J. Trejo, 2006. "Assimilation via Prices or Quantities?: Sources of Immigrant Earnings Growth in Australia, Canada, and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    9. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 95-126, December.
    10. George J. Borjas, 2000. "Introduction to "Issues in the Economics of Immigration"," NBER Chapters,in: Issues in the Economics of Immigration, pages 1-14 National Bureau of Economic Research, Inc.
    11. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
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    13. Ingo Eduard Isphording & Sebastian Otten, 2013. "The Costs of Babylon—Linguistic Distance in Applied Economics," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 354-369, 05.
    14. repec:zbw:rwirep:0337 is not listed on IDEAS
    15. 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.
    16. Michael Beenstock & Barry Chiswick & Ari Paltiel, 2010. "Testing the immigrant assimilation hypothesis with longitudinal data," Review of Economics of the Household, Springer, vol. 8(1), pages 7-27, March.
    17. 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 168-192, April.
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    Citations

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    Cited by:

    1. Sarit Cohen Goldner & Gil Epstein, 2014. "Age at immigration and high school dropouts," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    2. Gatina, Liliya, 2016. "Does money buy happiness? Financial and general well-being of immigrants in Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 91-105.
    3. Sweetman, A. & van Ours, J.C., 2014. "Immigration : What About the Children and Grandchildren?," Discussion Paper 2014-009, Tilburg University, Center for Economic Research.
    4. Verdugo, Gregory, 2014. "The great compression of the French wage structure, 1969–2008," Labour Economics, Elsevier, vol. 28(C), pages 131-144.
    5. Arik Levinson, 2016. "How Much Energy Do Building Energy Codes Save? Evidence from California Houses," American Economic Review, American Economic Association, vol. 106(10), pages 2867-2894, October.
    6. Prummer, Anja & Siedlarek, Jan-Peter, 2014. "Institutions And The Preservation Of Cultural Traits," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 470, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    7. Karoly Fazekas & Zsuzsa Blasko (ed.), 2016. "The Hungarian Labour Market 2016," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences, number 2016, December.
    8. Blau, Francine D. & Kahn, Lawrence M., 2012. "Immigration and the Distribution of Incomes," IZA Discussion Papers 6921, Institute for the Study of Labor (IZA).
    9. Al?cia Adser? & Ana M. Ferrer, 2014. "The Myth of Immigrant Women as Secondary Workers: Evidence from Canada," American Economic Review, American Economic Association, vol. 104(5), pages 360-364, May.
    10. Adsera, Alicia & Ferrer, Ana, 2015. "The Effect of Linguistic Proximity on the Occupational Assimilation of Immigrant Men in Canada," IZA Discussion Papers 9499, Institute for the Study of Labor (IZA).
    11. Adserà, Alícia & Ferrer, Ana, 2016. "Occupational skills and labour market progression of married immigrant women in Canada," Labour Economics, Elsevier, vol. 39(C), pages 88-98.
    12. Kathryn H. Anderson, 2015. "Can immigrants ever earn as much as native workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 159-159, June.
    13. Arik Levinson, 2014. "How Much Energy Do Building Energy Codes Really Save? Evidence from California," NBER Working Papers 20797, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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