The effect of immigration on the earnings of native-born workers: Evidence from Australia

No consensus has been reached by previous studies on the impact of immigration on the earnings of natives. Using data from the Australia's 2001 Census of Population and Housing an individual-level earnings function is estimated by including the fraction of immigrants in a given skill group relative to total employment in that skill group as one of the independent variables. Using employees’ occupation and level of education as proxies for skill, the results indicate that generally immigrants have a significant positive effect on earnings of natives. The overall findings suggest that the increase in supply of labour due to immigration is offset by higher demand for labour and hence positive effect on native earnings.     

Which Child Immigrants Face Earnings Disparity? Age‐at‐immigration,Ethnic Minority Status and Labour Market Attainment in Canada

Using Canadian Census microdata from 1990 to 2005, we investigate the earnings attainment of immigrants to Canada in 6 age‐at‐arrival cohorts. In comparison to past work we extend our understanding regarding three dimensions of the age at immigration debate: we explore heterogeneity across fine grained age‐at‐arrival cohorts, over a fifteen‐year period and across different ethnic groups. We find that white immigrants and female immigrants arriving in Canada prior to age 18 face little earnings disparity. In contrast, visible minority male immigrants face significant earnings disparity regardless of their age‐at‐migration, and additionally this disparity increases sharply with age‐at‐migration. We find a break in earnings attainment at an age‐of‐arrival of 17, with immigrants arriving after this age performing much worse than those arriving at this age or earlier. The patterns observed are found for visible minority immigrants as a whole, and for Chinese, South Asian and African/Black origin immigrants examined separately.     

Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?

Based on the micro files of the Canadian Census we document an increasing earnings penalty for cohorts of immigrants arriving after the late-1970s, especially for the most recent cohort. We also find much quicker assimilation rates for these cohorts, especially for the most recent cohort. Since the late-1970s, the increasing earnings penalty dominated their more rapid assimilation, so that immigrants exhibited ever-deteriorating patterns of integration into the Canadian labour market. For the most recent cohort (2002–2006), this reversed itself, suggesting that the tide may have turned. We find this for both men and women. Our findings are robust across alternative regression specifications, as well as a sample that only considers full-time and full-year workers.     

The labor supply of male Hispanic immigrants in the United States

"Several recent studies have begun the systematic analysis of the labor market characteristics of Hispanics in the United States. This research has focused on two related issues: a) how the immigration and assimilation experience affects Hispanic earnings; and b) the measurement of wage differentials between Hispanics and non-Hispanics. The main findings of this research are that the earnings of (some) Hispanic immigrants rise rapidly after immigration; and that the wage differential between Hispanics and non-Hispanic whites is generally due to differences in observable skill characteristics. This article extends previous research by focusing on another labor market characteristic: the labor supply of Hispanic immigrants."     

The Economic Assimilation of African Immigrants in the United States

This article examines the puzzle that the earnings of African immigrants do not match their high qualifications in terms of educational attainment. We apply cohort analysis to compare the economic assimilation patterns of black African immigrants with that of black non‐African immigrants. We find results that are consistent with the idea that the lower earnings of African immigrants are due to greater difficulty with skill transferability. Africans face substantially lower earnings at entry than black natives and black non‐African immigrants, although they close a substantial part of the initial earnings gap over time. Moreover, the earnings gap at entry has narrowed for recent cohorts; and Africans who migrate during childhood and those with no college education face no disadvantage. We also find similar patterns of assimilation in labour supply and participation in welfare programmes, which indicate that Africans face greater challenges at entry but assimilate at a faster rate.     

Occupational downgrading and wages of New Member States immigrants to Ireland

This paper explores the importance of occupational downgrading in explaining the pay gap of New Member States (NMS) immigrants to Ireland by taking advantage of two data sources, the Census and the Survey on Income and Living Conditions (SILC). The study identifies biases in the coverage of NMS immigrants in SILC that dampen their estimated earnings disadvantage. Corrections to population weights are suggested. These adjustments have a significant impact on results, increasing both the size of the wage penalty of NMS immigrants and the extent to which the pay gap can be explained by occupational downgrading. A replication of published results for the UK reveals similar patterns of penalties for NMS workers in both countries. Factors that may explain the concentration of NMS workers in low‐skill/low‐wage occupations are discussed.     

The Human Capital Model of Selection and Immigrant Economic Outcomes

This article examines the trends in the economic advantage that highly educated immigrants hold over less educated immigrants in Canada, focusing on the differences between short‐run and longer‐run outcomes. Using data from the Longitudinal Immigration Database covering the period from the 1980s to the 2000s, this study finds that the relative entry earnings advantage that higher education provides to new immigrants has decreased dramatically over the last 30 years. However, university‐educated immigrants had a much steeper earnings trajectory than immigrants with trades or a high school education. The earnings advantage among highly educated immigrants increases significantly with time spent in Canada. This pattern is observed for virtually all immigrant classes and arrival cohorts. The results suggest that short‐run economic outcomes of immigrants are not good predictors of longer‐run results, at least by educational attainment. The implications of these findings for immigration selection policy are discussed in the conclusion.     

SEGMENTED ASSIMILATION AMONG MEXICANS IN THE SOUTHWEST

This article examines segmented assimilation among foreign-born and U.S.-born Mexicans. Using the 2000 census, this article investigates how immigrants' length of residence in the United States and nativity affect the earnings and self-employment outcomes of low- and high-skilled Mexican men and women in the Southwest. Findings reveal that the earnings of low-skilled, foreign-born Mexicans decrease as immigrants reside in the United States longer and are generally lower among the U.S. born than the foreign born. In contrast, the earnings of high-skilled, foreign-born Mexicans increase as immigrants reside in the United States longer and are generally higher among U.S.-born Mexicans than foreign-born Mexicans. Moreover, self-employment participation decreases as immigrants reside in the United States longer and is lower among the U.S. born than the foreign born, regardless of skill. Since self-employment results in lower earnings, a decline in self-employment indicates economic progress. Furthermore, men are generally better off than women. Drawing from segmented assimilation theory, findings support the "downward assimilation" hypothesis among low-skilled Mexicans and the "Anglo-conformity" hypothesis among high-skilled Mexicans. Overall, this research provides evidence of intragroup differences in segmented assimilation among foreign-born and U.S.-born Mexicans in the Southwest.     

Testing the immigrant assimilation hypothesis with longitudinal data

This paper is concerned with the comparison of alternative empirical techniques (cross section, synthetic cohort and panel data) for testing the immigrant assimilation hypothesis (IAH). The IAH specifies that immigrants acquire destination relevant human capital, but at a decreasing rate, with duration in the destination. Hence, ceteris paribus, earnings would be expected to increase, at a decreasing rate, with duration. The true assimilation effects may be obscured, however, in analyses of synthetic cohort or panel (longitudinal) data if there are period effects. That is, if the effect on earnings of duration in the destination varies over time. The empirical analysis uses a matched sample of adult male immigrants from the 1983 and 1995 Censuses of Israel. The matched data show that selective exit from the labor force (due to death, absence from the labor force, and inability to match, but not the remigration of immigrants) is associated with lower earnings in 1983. This biases upward the earnings assimilation estimated by the synthetic cohort method. The earnings data are also consistent with the hypothesis that the mass immigration to Israel from 1989 to 1995 raised the return (price) to Israeli-specific human capital among long-duration immigrants sufficiently to more than offset the greater increase in units of destination human capital acquired by more recent immigrants. As a result, long-duration immigrants experienced a steeper increase in earnings from 1983 to 1995. This annulled the true assimilation effects from 1983 to 1995. Longitudinal tests of IAH which assume that the returns to destination-specific skills remained constant (i.e., that there are no period effects) are biased against supporting the IAH if these returns increased.     

Estimating Self‐Selection of Immigrants: Comparing Earnings Differentials Between Natives and Immigrants in the US and Israel

Immigrants’ economic assimilation in host countries is determined by patterns of self‐selection on both – observed attributes (mainly human capital) and unobserved attributes of the immigrants from their source countries. In the present study immigrants’ economic assimilation in the United States and Israel are compared. More specifically, the study compares the impact of immigrants’ unobserved characteristics on their earnings in both countries by applying a model for decomposing difference in differentials. It makes use of United States and Israeli decennial census data for comparing self‐selection patterns on unobserved attributes of Jewish immigrants from the former Soviet Union (FSU) who arrived in the United States and Israel during the 1970s. The results indicate that FSU immigrants who chose the United States have significantly higher levels of unobserved earnings determinants than those who chose Israel. These results are discussed in light of migration theories.     

Is there an Intermarriage Premium for Male Immigrants? Exogamy and Earnings in Sweden 1990–2009

This paper analyzes the impact of intermarriage on the economic integration of immigrants in Sweden, measured by annual earnings. We use longitudinal register data for the period 1990–2009 for the total population of immigrant men born 1960–1974. The results reveal large intermarriage premiums, but overall this seems to be a result of selection effects as most of the premium is visible already at the time of marriage. For the most economically marginalized immigrants, however, an intermarriage premium arises within marriage implying that forming a union with a native triggers a more rapid earnings growth among them.     

Earning Gaps for Chinese Immigrants in Canada and the United States

This study compares the US and Canada on the gap in earnings between Chinese immigrants and native‐born whites. Canada and the US are arguably more alike than most possible country pairings, yet they differ in significant ways in their approaches to immigration and integration. The primary difference between Canada and the US regarding immigration policy is that Canada selects a larger proportion of economic immigrants – that is, those admitted based on their ability to contribute to the economy – than the US's focus on family reunification. Canadian immigration and multicultural integration policy does not appear to improve Chinese immigrant earnings in the way that might be predicted from Canada's skilled‐based immigrant selection policy and welcoming social context. In spite of a more laissez‐faire approach to immigrant integration and a less skill‐selective immigration policy, we show that Chinese immigrants are earning relatively more in the US than in Canada.     

Unionization and Income Growth of Racial Minority Immigrants in Canada: A Longitudinal Study

This study examines the effect of unionization on the labor market integration of newly arrived immigrants in Canada. We find that non‐white recent immigrants gain access to unionized jobs at a slower rate than do white recent immigrants. The effect of unionization on earnings is somewhat lower for non‐white recent immigrants than for white recent immigrants. These findings are based on growth curve modeling of longitudinal data from the Survey of Labour and Income Dynamics (SLID). Therefore, unionization does not contribute to reducing the earnings gap of non‐white recent immigrants relative to white immigrants and the native‐born.     

A Panel Study of Immigrants’ Overeducation and Earnings in Australia

The recent literature on overeducation has provided divergent results on whether or not overeducation bears an earnings penalty. In addition, few studies have considered overeducation among immigrants. This article uses panel data analyses to investigate the match between education and occupation and resulting earnings effects for immigrants from English‐Speaking and Non‐English Speaking Backgrounds, relative to the native‐born population in Australia. Based on nine years of longitudinal data, the panel approach addresses individual heterogeneity effects (motivation, ability, and compensating differentials) that are crucial in overeducation analysis. First, we find that immigrants have significantly higher incidence rates of overeducation than the native‐born. This probability increases, rather than diminishes, once we control for unobserved correlated effects. Second, based on panel fixed effects analyses there is no penalty for overeducation for ESB immigrants. However, NESB immigrants receive a lower return to required and overeducation compared to the other groups after controlling for individual heterogeneity.     

North Central Sociological Association Presidential Address. Renewing Sociology: Integral Science,Solidarity, and Loving Kindness

Abstract

We contribute to the debate about the effects of immigration in the United States by analyzing the impact of recent (1980-2000) immigration on the economic outcomes of African Americans. We use Census 2000 data for a sample of 150 U.S. metropolitan areas to examine these outcomes. Our findings indicate that after controlling for a variety of theoretically relevant control variables, increases in recent immigration decrease labor force non-participation and poverty, and increase median earnings, among blacks. We argue that recent immigration expands blacks' job opportunities in or near the middle of the occupational hierarchy (e.g., protective services; office and administrative support). However, we also find a non-linear effect of immigration on black median earnings which indicates an immigrant population threshold where black earnings begin to decline. Thus, both sides of this debate may be correct: middle-class blacks benefit from increased immigration, but the gains of the black middle class do not always offset the fact that poor and lower-skilled blacks are losing out because of increased competition with immigrants.     

Decreasing the Recent Immigrant Earnings Gap: The Impact of Canadian Credential Attainment

It is well documented that newly arrived immigrants face a significant earnings gap relative to native‐born workers. One way for new immigrants to improve their relative labour market position upon arrival in a host country is to improve their educational credentials. According to signalling theory, a host‐country credential should provide employers with a proxy for true productivity on the job, leading to higher earnings. Using data from a Canadian longitudinal survey, we employ longitudinal growth‐curve techniques to estimate the effect of receiving a Canadian educational credential on the income growth of racial‐minority recent immigrants compared to native‐born Canadians. The results indicate that the earnings gap between recent immigrants and native‐born Canadians is significantly reduced with the attainment of a Canadian educational credential.     

Self‐Selection and Economic Assimilation of Immigrants: The Case of Iranian Immigrants Arriving to Three Countries During 1979–1985

The study is designed to evaluate the impact of the interaction between patterns of immigrants' self‐selection and the context of reception at destinations on economic assimilation of Iranian immigrants who came to three countries during 1979–1985. For that purpose, we studied immigrants at the age of 22 or higher upon arrival by utilizing the 5 percent 1990 and 2000 Public Use Microdata files (PUMS) of the United States census, the 20 percent demographic samples of the 1983 and 1995 Israeli censuses of population, and the 1990 and 2000 Swedish registers. The results indicate that the “most qualified” immigrants – both on observed and unobserved variables – who left Iran right after the Islamic revolution, arrived in the US Their positive self‐selection led them to reach complete earnings assimilation with natives there. Iranian immigrants who arrived in Israel and Sweden did not achieve full earnings assimilation with natives. Of these two groups, a smaller immigrant‐to‐native gap in average earnings was found in Sweden, but in the same time Iranian immigrants in Israel were more positively self‐selected and showed better assimilation than their counterparts in Sweden. Market structure played a certain role in immigrants' earnings assimilation mainly in Sweden.     

The “Negative” Assimilation of Immigrants: a Counter-Example from the Canadian Labor Market

With Canadian data ranging from 1991 to 2011, this paper investigates the effects of the number of years since migration on the earnings of immigrants from the United States and the United Kingdom in Canada. The aim is to test whether the “negative assimilation” hypothesis proposed by Chiswick and Miller (Ind Labor Relat Rev 64(3):502–525, 2011) for immigrants to the United States is a universal finding for immigrants from countries with similar economic standing and skill transferability to those of the destination country. We also expand on Chiswick and Miller’s work by doing regressions for both males and females and by comparing to Chinese immigrants, a representative group from a less developed country. We find that the negative assimilation hypothesis does not hold for the Canadian labor market. Specifically, the assimilation rate is close to zero for U.K. immigrants and strictly positive for U.S. immigrants (although lower than that of a comparison group of Chinese immigrants). The assimilation rates are also higher for females than for males.     

Chinese Immigrants in the U.S. Labor Market: Effects of Post‐Tiananmen Immigration Policy1

The Tiananmen Square protests in 1989 and ensuing government crackdown affected Chinese nationals not only at home but also around the world. The U.S. government responded to the events in China by enacting multiple measures to protect Chinese nationals present in the United States. It first suspended all forced departures among Chinese nationals present in the country as of June 1989 and later gave them authorization to work legally. The Chinese Student Protection Act, passed in October 1992, made those Chinese nationals eligible for lawful permanent resident status. These actions applied to about 80,000 Chinese nationals residing in the United States on student or other temporary visas or illegally. Receiving permission to work legally and then a green card is likely to have affected recipients’ labor market outcomes. This study uses 1990 and 2000 census data to examine employment and earnings among Chinese immigrants who were likely beneficiaries of the U.S. government’s actions. Relative to immigrants from Hong Kong, Taiwan, and South Korea – countries not covered by the post‐Tiananmen immigration policy measures – highly educated immigrants from mainland China experienced significant employment and earnings gains during the 1990s. Chinese immigrants who arrived in the U.S in time to benefit from the measures also had higher relative earnings in 2000 than Chinese immigrants who arrived too late to benefit. The results suggest that getting legal work status and then a green card has a significant positive effect on skilled migrants’ labor market outcomes.     

Challenging transitions? Assessing the occupational mobility patterns of US immigrants by gender

This article uses the New Immigrant Survey to assess the occupational mobility of US immigrants. Estimates from OLS and Heckman selection models show the occupational mobility of immigrants follows a U-shaped pattern: immigrants arriving in the United States see their occupational status decline before it gradually improves. However, even 9 years after coming to the United States, the occupational status of immigrants remains lower than prior to their arrival in the country. Our findings also suggest that immigrant women with higher occupational status tend to move more often to the United States than immigrant men. Conversely, immigrant women are more likely than men to experience career interruptions after migration. Finally, occupational employment growth rates (defined as the growth rate in the number of jobs for an occupation) have a positive impact on both men and women immigrants' ability to recover their occupational status, though the impact appears to be greater for immigrant women.