Insights from longitudinal data on the earnings growth of U.S. foreign-born men

Does the growth in earnings of foreign-born men exceed that of U.S. natives? We use longitudinal data on earnings from a Social Security Administration (SSA) database matched to the 1994 March Current Population Survey to shed new light on this important issue. We also examine the trend over time in the foreign-born men's earnings growth and illuminate the various ways that SSA data can be used to explore the earnings patterns of immigrants.     

Immigrant over-education: evidence from Denmark

This paper uses register-based panel data to examine over-education amongst immigrants in Denmark. Foreign-educated immigrants are found to be more prone to over-education than both native Danes and immigrants educated in Denmark. Labour market experience reduces this risk, whereas periods of unemployment make a person more likely to accept a job for which he is over-qualified. Over-educated workers earn slightly more than their adequately matched colleagues, but less than if they had been appropriately matched in a higher level job. Foreign-educated immigrants gain the least from over-education.     

Immigrant earnings: Language skills, linguistic concentrations and the business cycle

This study of the determinants of earnings among adult foreign-born men using the 1990 Census of Population focuses on the effects of the respondent's own English language skills, the effects of living in a linguistic concentration area, and the effects of the stage of the business cycle at entry into the U.S. labor market. The analysis demonstrates the importance of English language fluency among the foreign born from non-English speaking countries. There is also strong evidence for the complementarity between language skills and other forms of human capital. Furthermore, there is strong evidence using selectivity correction techniques for the endogeneity between language and earnings. Received: 30 November 1999/Accepted: 6 February 2001     

Emigration from the USA: Multiplicity survey evidence

Special national surveys in the 1980s give the only recent data about emigrants from the USA, based on asking residents about their parents, siblings, and children living outside the USA who ever lived here. Each of the three surveys yielded an initial or minimal estimate of at least one million surviving emigrants. Adjusting for probable omission of emigrants without a resident immediate relative, the number of emigrants surviving as of 1990 is likely to exceed two million and, with alternative assumptions, could exceed three million. Due to inherent uncertainties in differing methodologies for measuring emigration for the past three decades, the implied level of emigration of permanent residents for the 1980s may be similar to previous levels. This finding contradicts popular belief of a simple direct association, i.e., that increasing immigration levels would be associated with increasing emigration levels. Emigration levels result from population heterogeneity on such characteristics as origin country, location and strength of familial ties, and reasons for coming to the USA, and associated probabilities of emigration. For many of the post-1965 immigrant cohorts, there is one or more decades during which emigration may yet occur.Abbreviations ALAs Americans living abroad - INS US Immigration and Naturalization Service - IRCA Immigration Reform and Control Act of 1986 - CPS Current Population Survey This article is partially based on a paper presented at the 1990 annual meeting of the Population Association of America in Toronto, Canada, while the author was a member of the Population Analysis Staff of the US Bureau of the Census.     

Immigration policy and immigrant quality: empirical evidence from Canada

This paper examines the earnings of foreign-born and native-born men in an attempt to evaluate whether the decline in the quality of Canadian immigrants is related to changes in the country-of-origin mix and the class (type) mix of immigrants. Based on a human capital interpretation, higher quality immigrants are defined as immigrants who have smaller on-entry earnings differentials and have earnings that grow at a faster rate (relative to native-born Canadians). The analysis consists of two parts. The first part is based on individual data on earnings and socio-economic characteristics collected in the 1971 and 1986 Canadian Censuses. Earnings equations are estimated for 16 country-of-origin immigrant groups. These regressions are then used to construct a cohort-specific measure of immigrant quality based on the earnings differential between foreign-born and native-born Canadians. In the second part of the analysis, additional regression equations are estimated, pertaining to the period 1968 to 1985, that relate these Census-based measures of immigrant quality to the country-of-origin and class mix of immigrants. In this analysis, unpublished data, supplied by theDepartment of Employment and Immigration, describing the distribution of immigrants across the three main immigrant classes is used. Overall, the analysis confirms that there has been a sharp secular decline in the quality of Canadian immigrants and suggests that it is related to changes in both the country-of-origin and class mix of immigrants.Earlier versions of this paper were presented at the meetings of the Canadian Economics Association and the European Society for Population Economics. The comments of Martin Browning, John Ermisch and two anonymous referees are gratefully acknowledged. Of course, all remaining errors and shortcomings are the sole responsibility of the authors.     

The Place of Place: Location and Immigrant Economic Well-being in Canada

In recent years, successive cohorts of immigrants to Canada have experienced a striking level of deterioration in their economic well-being. At the same time, more immigrants than ever before are choosing to live in Montréal, Toronto, or Vancouver, Canada’s three-first-tier or ‘gateway cities’. This paper uses instrumental variable regression techniques to determine the extent to which gateway city clustering is related to immigrant economic well-being. It identifies whether employment status, earnings, and employment suitability would significantly improve if more immigrants chose to live outside of Canada’s three gateway cities. The results suggest that, for the most part, although immigrants do worse than the native-born in gateway cities, they do experience marginally higher earnings than their non-gateway counterparts. Income and unemployment rates are higher for immigrants in gateway cities than they are for the native-born, but the gateway/non-gateway disparity is minimal. Levels of employment mismatch are substantially higher in gateway cities, compared to both the gateway city native-born population, and non-gateway immigrants. An analysis of the data shows that only marginal improvements to economic well-being would result from an increase in non-gateway immigration, and that there are other factors, like race or skin colour, that seem to be more closely linked to labour market success.

Immigrant assimilation pre and post labour market entry: evidence from the UK Labour Force Survey

We estimate models of employment an earnings for a sample of white and non-white male immigrants drawn from the Labour Force Survey between 1993 and 2004. Immigrants who arrived to enter the labour market (labour market entrants) are distinguished from those who arrived to complete their education (education entrants). Diverse patterns of labour market assimilation are found depending on ethnicity and immigrant type. Amongst labour market entrants, whites do better than non-whites, whilst amongst education entrants, highly qualified prime-age non-whites perform as well as their white counterparts. Relative to white natives, labour market outcomes for all immigrant groups have a tendency to decline with age.

Effects of ability mixing in high school on adulthood earnings: quasiexperimental evidence from South Korea

We estimate impacts of ability mixing compared to ability grouping in high school education on students’ adulthood earnings. To overcome endogeneity and selection problems that plagued the previous studies, we exploit a policy experiment in South Korea in the 1970s, which changed the education regime of general high schools from grouping to mixing in major cities. We find that the mixing treatment has a positive but statistically insignificant effect on average adulthood earnings. We also find that while mixing has positive effects on low ability students’ adulthood earnings, it has smaller positive or even negative effects on higher ability students.      

You can go home again: Evidence from longitudinal data

In this paper we analyze the economic and demographic factors that influence return migration, focusing on generation 1.5 immigrants. Using longitudinal data from the 1979 youth cohort of the National Longitudinal Surveys (NLSY79), we track residential histories of young immigrants to the United States and analyze the covariates associated with return migration to their home country. Overall, return migration appears to respond to economic incentives, as well as to cultural and linguistic ties to the United States and the home country. We find no role for welfare magnets in the decision to return, but we learn that welfare participation leads to lower probability of return migration. Finally, we see no evidence of a skill bias in return migration, where skill is measured by performance on the Armed Forces Qualifying Test.     

Self-selection,earnings, and out-migration: A longitudinal study of immigrants to Germany

In this paper we examine the process of out-migration and investigate whether cross-sectional earnings assimilation results suffer from selection bias due to out-migration. Our 14 year longitudinal study reveals that emigrants are negatively selected with respect to occupational prestige and to stable full time employment. Our results show no selectivity with respect to human capital or gender. The likelihood of return migration is strongly determined by the range and nature of social attachments to Germany and origin countries. It is also the highest during the first five years since arrival, and grows higher toward retirement. Selective emigration, however, does not appear to distort cross-sectional estimates of earnings assimilation in a relevant way.All Correspondence to Douglas S. Massey. This study has been made possible through various research visits to DIW Berlin and IZA in Bonn. We are grateful for the access to the data, and many useful comments on various drafts by Klaus F. Zimmermann. Earlier drafts were presented at the annual conference of the Population Association of America in Atlanta, and research seminars at Princeton University and IZA, Bonn. We wish to thank many participants for stimulating discussions and useful comments. We have benefitted in making revisions from the comments of three anonymous referees. Responsible editor: Klaus F. Zimmermann.     

Quality of migrant schools in China: evidence from a longitudinal study in Shanghai

As spaces in public schools are limited, a substantial number of migrant children living in Chinese cities but without local hukou are enrolled in private migrant schools. This paper studies the quality of migrant schools using data collected in Shanghai in 2010 and 2012. Although students in migrant schools perform considerably worse than their counterparts in public schools, the test score difference in mathematics has almost been halved between 2010 and 2012, due to increased financial subsidy from the government. We rule out alternative explanations for the convergence in test scores. We also conduct a falsification test and find no relative changes in the performance of migrant school students based on a follow-up survey of a new cohort of students in 2015 and 2016, a period with no changes in financial subsidies to migrant schools.     

Immigrant suicide in Australia,Canada, England and Wales,and the United States

Factors influencing the suicide rates of numerous immigrants in groups in Australia, Canada, England and Wales, and the United States during the period 1959–73 were examined. Standardized mortality ratios (SMRs) were calculated for the origin, immigrant and destination native-born populations using the Canadian native-born age-sex-specific suicide rates as the standard. For males, the foreign-born in England and Wales had the lowest suicide rates and the foreign-born in the United States the highest. For females the variation was smaller, with immigrants in the United States having the lowest rates, and those in Australia the highest. Agespecific suicide rates indicated that relative to the native-born, foreign-born elderly had substantially elevated risks of suicide.     

Demographic transition and economic growth: Empirical evidence from Greece

Over the past decades, due to a combination of declining fertility rates and rising life expectancies, most industrialized countries have experienced aging populations and low numbers of young populations that may pose economic problems in the future. This paper investigates the relationship first between fertility rate and infant mortality rate and second among demographic changes, real wages and real output in Greece over the period 1960–96. When we control for fluctuations in overall economic activity and the labor market on the bivariate relationship between fertility and mortality rates, the evidence suggests that Granger-causation must exist in at least one direction. The results show that in the long run a decrease in infant mortality rates, taking into consideration economic performance and the labor market, causes a reduction in fertility rates. Also, employing the vector error-correction models, the variance decomposition analysis and the impulse response functions, the empirical results support the endogeneity of fertility choice to infant mortality, the labor market and the growth process. Received: 16 May 1999/Accepted: 18 September 2000     

Income growth among nonresident fathers: evidence from Wisconsin

This study examines the changes over time in the personal incomes of nonresident fathers—whether divorced or nonmarital—in Wisconsin. Using data from the Wisconsin Court Record data base and the Wisconsin Department of Revenue, the authors examine the incomes of these fathers over the first seven years following a divorce or the initiation of a paternity suit. They also study separately the income patterns of initially poor nonresident fathers and fathers whose nonresident children receive welfare. The most important finding is that the incomes of nonmarital fathers, which typically are low in the beginning, increase dramatically over the years after paternity establishment—often to a level comparable with the incomes of divorced fathers. On the basis of their findings, the authors conclude that failing to establish child support obligations for nonresident fathers simply because their incomes are initially low does not appear justified. nt]mis|The authors thank the Russell Sage Foundation, the Ford Foundation, and the Wisconsin Department of Health and Social Services for financial support. They also wish to thank participants in the APPAM panel on noncustodial fathers, as well as colleagues at IRP, especially Pat Brown, for helpful comments and suggestions. A preliminary draft of this paper was presented at APPAM, Bethesda, Maryland, in October 1991.     

Immigrant retention in NB: an analysis using administrative Medicare Registry data

Journal of Population Research - This paper examines immigrant retention using a novel approach based on data contained in New Brunswick’s Medicare Registry database. To date, researchers...     

Quantifying the costs of drought: new evidence from life satisfaction data

We estimate the cost of droughts by matching rainfall data with individual life satisfaction. Our context is Australia over the period 2001 to 2004, which included a particularly severe drought. Using fixed-effect models, we find that a drought in spring has a detrimental effect on life satisfaction equivalent to an annual reduction in income of A$18,000. This effect, however, is only found for individuals living in rural areas. Using our estimates, we calculate that the predicted doubling of the frequency of spring droughts will lead to the equivalent loss in life satisfaction of just over 1% of GDP annually.

A longitudinal analysis of family migration and the gender gap in earnings in the united states and great britain

This article uses longitudinal data for the United States and Great Britain to examine the impact of residential mobility and childbirth on the earnings of women, their family earnings, and the related division of earnings by gender. This project is the _ rst to compare explicitly the impact of childbirth and family migration on women’s earnings, and it extends prior cross-sectional and longitudinal studies on isolated countries by providing a direct contrast between two major industrialized nations, using comparable measures. The results indicate that families respond in similar ways in both countries to migration and childbirth. In response to both migration and childbirth, women’s earnings fall at the time of the event and recover slowly afterward, but the magnitude of the impact is roughly twice as large for childbirth as for migration. However, migration but not the birth of a child is also associated with a significant increase in total family earnings because of increased husbands’ earnings. As a result, the effect of migration on the relative earnings of wives to husbands is similar to the effect of childbirth. These results suggest that family migration should be given consideration in the literature on the gender earnings gap.