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Re-Examining the Earnings Assimilation of Immigrants




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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  • Taryn Ann Galloway, 2008. "Re-Examining the Earnings Assimilation of Immigrants," Discussion Papers 570, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:570

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    References listed on IDEAS

    1. Taryn Ann Galloway & Rolf Aaberge, 2005. "Assimilation effects on poverty among immigrants in Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 691-718, November.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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 333-344, March.
    7. Bernt Bratsberg & Erling Barth & Oddbjørn Raaum, 2006. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 243-263, May.
    8. George J. Borjas & Lynette Hilton, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 575-604.
    9. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    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. 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.
    12. 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, March.
    13. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    14. John E. Hayfron, 1998. "The performance of immigrants in the Norwegian labor market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(2), pages 293-303.
    15. 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.
    16. Taryn Ann Galloway, 2006. "The Labor Market Integration of Immigrant Men and Women," Discussion Papers 483, Statistics Norway, Research Department.
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    Cited by:

    1. Sanromá, Esteban & Ramos, Raul & Simón, Hipólito, 2009. "Immigrant Wages in the Spanish Labour Market: Does the Origin of Human Capital Matter?," IZA Discussion Papers 4157, Institute for the Study of Labor (IZA).

    More about this item


    Immigration; assimilation; employment; earnings;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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