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Re-Examining the Earnings Assimilation of Immigrants

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    Studies on the earnings assimilation of immigrants have traditionally focused exclusively on immigrants in employment. However, given evidence of immigrants' difficulties in entering and remaining in the labor market, restricting the population to those in employment may entail a selection bias. In addition, the primary variable of interest in such studies is often the duration of residence or the years since migration (YSM), which is interpreted as a proxy for potential labor market experience in the host country. The appropriateness of that proxy will, however, also depend on the extent to which immigrants are able to quickly enter and remain in the labor market. This study thus re-examines evidence on the earnings assimilation of immigrants in light of selection into the labor market and with better information on actual labor market experience in the host country. The findings suggest that a major revision of previous conclusions about the earnings assimilation of immigrants in Norway may be in order.

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    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp570.pdf
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    Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 570.

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    Date of creation: Dec 2008
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    Handle: RePEc:ssb:dispap:570
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    1. Michael Baker & Dwayne Benjamin, 1995. "The Receipt of Transfer Payments by Immigrants to Canada," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 650-676.
    2. Jörgen Hansen & Magnus Lofstrom, 2010. "Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare," Working Papers id:2647, eSocialSciences.
    3. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, 03.
    4. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
    5. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," Memorandum 20/2002, Oslo University, Department of Economics.
    6. 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.
    7. Schmidt, Christoph M., 1997. "Immigrant performance in Germany: Labor earnings of ethnic German migrants and foreign guest-workers," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 379-397.
    8. Michael Shields & Stephen Wheatley Price, 1998. "The earnings of male immigrants in England: evidence from the quarterly LFS," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1157-1168.
    9. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
    10. Blume Jensen, Kræn & Gustafsson, Björn Anders & Pedersen, Peder J. & Verner, Mette, 2005. "At the Lower End of the Table: Determinants of Poverty among Immigrants to Denmark and Sweden," IZA Discussion Papers 1551, Institute for the Study of Labor (IZA).
    11. Taryn Ann Galloway, 2006. "The Labor Market Integration of Immigrant Men and Women," Discussion Papers 483, Research Department of Statistics Norway.
    12. George J. Borjas & Lynette Hilton, 1995. "Immigration and the Welfare State: Immigrant Participation in Means- Tested Entitlement Programs," NBER Working Papers 5372, National Bureau of Economic Research, Inc.
    13. Taryn Ann Galloway & Rolf Aaberge, 2005. "Assimilation effects on poverty among immigrants in Norway," Journal of Population Economics, Springer, vol. 18(4), pages 691-718, November.
    14. John E. Hayfron, 1998. "The performance of immigrants in the Norwegian labor market," Journal of Population Economics, Springer, vol. 11(2), pages 293-303.
    15. 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.
    16. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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