An Australian map of British and Irish literacy in 1841

This contribution to the study of the literacy transition in Britain, Ireland, and Australia also touches on the relationship between literacy and international migration. Some 20,000 emigrants arrived in Australia in 1841 and their literacy is here established at the individual level, and then related to regional origins, occupations, religion, sex, and family status in the British Isles. The new Australian data offer unusual evidence to juxtapose with the prevailing account of British and Irish literacy. The paper makes systematic comparisons of the immigrant evidence with existing literacy findings for the populations of England and Wales, of Ireland, and the colonial population of Australia in the year 1841. The results also show extraordinary similarity of rank orderings between the Australian data and the conventional sources. The results show that the immigrants were consistently more literate than the home and the receiving populations and indicate a substantial link between migration and literacy.     

Measuring immigrant wage growth using matched CPS files

Cross-sectional estimates of immigrant wage growth have painted an optimistic picture of the ability of immigrants to adapt to the U.S. labor market: Studies using cross-sectional data have generally found the wage growth of immigrants to exceed that of the native born. This optimistic picture of immigrant economic assimilation was challenged by the important finding that compared to earlier immigrant cohorts, recent immigrants started at much lower wages. As such, the high wage growth of immigrants relative to the native born measured in cross-sectional data may simply be the spurious result of declining immigrant earnings ability. In this paper, we match Current Population Survey samples so that the wages of individual immigrant and native-born men can be followed for one year. We find that the wage growth of immigrants does exceed that of the native born. The general finding of faster immigrant wage growth also holds when imposing the foreign-born geographic distribution upon natives, but not when imposing the native-born geographic distribution on the foreign born—a result consistent with some theories of immigrant assimilation. In each comparison, however, the actual wage growth of immigrants relative to natives is similar to the predictions of cross-sectional regressions. This similarity suggests that either there is no cohort quality bias in the cross-sectional estimates of immigrant wage growth, or that there has been a coincidental increase in immigrant wage growth as the entry wages of immigrants have fallen.     

Labor market assimilation and the self-employment decision of immigrant entrepreneurs

This paper uses data from the 1980 and 1990 U.S. Censuses to study labor market assimilation of self-employed immigrants. Separate earnings functions for the self-employed and wage/salary workers are estimated. To control for endogenous sorting into the sectors, models of the self-employment decision are estimated. Self-employed immigrants are found to do substantially better in the labor market than wage/salary immigrants. Earnings of self-employed immigrants are predicted to converge with natives' wage/salary earnings at about age 30 and natives' self-employed earnings at about age 40. Including the self-employed in the sample reduces the immigrant-native earnings gap by, on average, 14%. Received: 10 November 1999/Accepted: 3 August 2000     

The Value of an Employment-Based Green Card

The need for and role of highly skilled immigrant workers in the U.S. economy is fiercely debated. Proponents and opponents agree that temporary foreign workers are paid a lower wage than are natives. This lower wage partly originates from the restricted mobility of workers while on a temporary visa. In this article, we estimate the wage gain to employment-based immigrants from acquiring permanent U.S. residency. We use data from the New Immigrant Survey (2003) and implement a difference-in-difference propensity score matching estimator. We find that for employer-sponsored immigrants, the acquisition of a green card leads to an annual wage gain of about $11,860.     

Undocumented workers in the labor market: an analysis of the earnings of legal and illegal Mexican immigrants in the United States

This paper studies the differences in earnings between Mexican legal and illegal immigrants in the United States. The analysis includes a cross-sectional examination of the wage differences between legal and undocumented workers as well as a longitudinal analysis examining the impact of legalization on the earnings of previously-undocumented workers. It is shown that the average hourly wage rate of male Mexican legal immigrants in the United States was 41.8% higher than that of undocumented workers while female legal immigrants earned 40.8% more. Though illegal immigrants have lower education and English proficiency, and a shorter period of residence in the United States, than legal immigrants, it is shown that differences in the observed characteristics of legal and illegal immigrants explain only 48% of the log-wage gap between male legal and illegal workers and 43% of the gap for women. An analysis of undocumented immigrants legalized after the 1986 U.S. immigration policy reform shows significant wage growth in the four years following legalization. These gains are due mostly to the change in legal status itself, not to changes in the characteristics of immigrants over time. Received: 7 July 1997/Accepted: 16 March 1998     

Immigrants,visible minorities,and self-employment

Historically, self-employment was perceived as a mechanism whereby immigrants could circumvent discriminatory practices in wage labor. More recent research by Borjas in the United States, however, suggests that this view is incorrect. Immigrants, particularly members of visible minorities, are disadvantaged in both the wage labor and the self-employed markets. This pattern has not been replicated in Canada, however; after controlling for several socioeconomic attributes, it is found that foreign-born, self-employed visible minority-group members are not at a disadvantage in relation to the majority population. Foreign-born visible minority group members earn less, however, in the wage labor force. In contrast, it was found that there is no statistically significant difference between native-born visible minority group members and others in the wage labor force, and that native-born, self-employed minority-group members may earn more than others in that market segment.     

Migration background and educational tracking

Research on immigrants’ educational disadvantages documents substantial immigrant–native achievement gaps in standardized student assessments. Exploiting data from the German PIRLS extension, we find that second-generation immigrants also receive worse grades and teacher recommendations for secondary school tracks than natives, which cannot be explained by differences in student achievement tests and general intelligence. Second-generation immigrants’ less favorable socioeconomic background largely accounts for this additional disadvantage, suggesting that immigrants are disproportionately affected by prevailing social inequalities at the transition to secondary school. We additionally show that differences in track attendance account for a substantial part of the immigrant–native wage gap in Germany.     

Race,wages, and assimilation among Cuban immigrants

This study uses data from the 1980 and 1990 Census and the 1994–2000 Current Population Survey to examine the determinants of earnings among male Cuban immigrants in the U.S. by race. Nonwhite Cuban immigrants earn about 15 percent less than whites, on average. Much of the racial wage gap is due to differences in educational attainment, age at migration, and years in the U.S., but the gap remains at almost 4 percent after controlling for such factors. Nonwhite Cuban immigrants also have lower returns to education than whites. A comparison to white, non-Hispanic U.S. natives indicates that nonwhite Cubans not only earn less initially than white Cubans on arrival in the U.S., but also do not significantly close the racial earnings gap over time.     

Does Human Capital Raise Earnings for Immigrants in the Low-Skill Labor Market?

We use monthly Survey of Income and Program Participation data from 1996–1999 and 2001–2003 to estimate the determinants of differentiation in intercepts and slopes for age/earnings profiles of low-skill immigrant and native male workers. Our findings provide further depth of understanding to the“mixed” picture of earnings determination in the low-skill labor market that has been reported by others. On the positive side, many immigrants are employed in similar occupations and industries as natives. Both groups show substantial wage gains over time and generally receive similar returns to years of schooling completed. Immigrants also receive substantial returns to acculturation, measured as age at arrival and English language skill. These results cast doubt on the strong version of segmented labor market theory, in which low-skill immigrants are permanently consigned to dead-end jobs with no wage appreciation. On the negative side, immigrants earn approximately 24% less than natives and are less likely to occupy supervisory and managerial jobs. Latino immigrants receive lower returns to education than do white immigrants. Furthermore, age at arrival and language ability do not explain the lower returns to education experienced by Latino immigrants. These results suggest that Latino immigrants in particular may suffer from barriers to mobility and/or wage discrimination. Whether these negative labor market experiences occur primarily for illegal immigrants remains unknown.     

Imputation Match Bias in Immigrant Wage Convergence

Although immigrants to the United States earn less at entry than their native-born counterparts, an extensive literature has found that immigrants have faster earnings growth that results in rapid convergence to native-born earnings. However, recent evidence based on U.S. Census data indicates a slowdown in the rate of earnings assimilation. We find that the pace of immigrant wage convergence based on recent data may be understated in the literature as a result of the method used by the census to impute missing information on earnings, which does not use immigration status as a match characteristic. Because both the share of immigrants in the workforce and earnings imputation rates have risen over time, imputation match bias for recent immigrants is more consequential than in earlier periods and may lead to an underestimate of the rate of immigrant wage convergence.     

Empirical characteristics of legal and illegal immigrants in the USA

We combine the New Immigrant Survey (NIS), which contains information on US legal immigrants, with the American Community Survey (ACS), which contains information on legal and illegal immigrants to the USA. Using an econometric methodology proposed by Lancaster and Imbens (J Econ 71:145–160, 1996) we compute the probability for each observation in the ACS data to refer to an illegal immigrant, conditional on observed characteristics. These results are novel, since no other work has quantified the characteristics of illegal immigrants from a random sample representative of the population. Using these conditional probability weights on the ACS data, we are able to uncover some interesting facts on illegal immigrants. We find that, while illegal immigrants suffer a large wage penalty compared to legal immigrants at all education levels, the penalty decreases with education. We also find that the total fertility rate among illegal immigrant women is significantly higher than that among legal ones, in particular for middle and higher educated women. Looking at the sector of activity, we document that the sectors attracting most illegal immigrants are constructions and agriculture. We also generate empirical distributions for state of residence, country of origin, age, sex, and number of legal and illegal immigrants. Our forecasts for the aggregate distribution of legal and illegal characteristics match imputations by the Department of Homeland Security.     

Legalization and human capital accumulation

This paper presents new evidence regarding the effects of legalization on the training of immigrants who were granted legal status through the US Immigration Reform and Control Act (IRCA) of 1986. Our findings point to a large increase in the immigrants’ incidence of training relative to comparable groups of natives following legalization. While training gains are higher for males, wage gains are higher for females. We also show that an important part of these changes in labor market outcomes occurs through occupation changes by newly legalized immigrants.     

The impact of U.S. immigration upon internal migration

The potential adverse effect of immigrants on job opportunities for natives continues to influence debate about immigration policy in the United States. Many studies have examined wage and employment outcomes; by contrast, we examine internal migration. We ask whether or not natives are more likely to depart from or less likely to move to metropolitan areas with high concentrations of immigrants. After controlling for other influences on migration, we find that metropolitan areas with higher concentrations of immigrants have only slightly lower rates of inmigration of natives. Such metropolitan areas also exhibit slightly lower rates of out-migration, contrary to expectation. These results suggest that the effect of immigrants on labor market redistribution of natives is modest.Research reported here was supported by a grant from the Alfred P. Sloan Foundation. We would like to thank Kofi Benefo for helpful comments.     

The incidence of subminimum pay among native and immigrant workers

This paper econometrically compares the subminimum wage propensities of immigrants and US natives using 1989 microdata. A conventional expectation is that immigrants are more likely to earn subminimum wages because of their lesser education and knowledge of labor rights. However, immigrants also tend to participate full time in the labor market and field studies suggest they provide employers an 'experienced' labor pool. Indeed, our findings indicate that immigrants by age, sex, and race/ethnic group are less likely than natives to receive subminimum wages. These findings imply that the foreign born do not contribute disproportionately to the informal economy.     

Social networks and the labour market mismatch

This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign born, ethnic concentration significantly increases the incidence of over-education. Using an Alternative Index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.     

Labor Market Segmentation and the Earnings of German Guestworkers

In this paper we study the occupational progress and earnings attainment of immigrants in Germany and compare them to native Germans. Our analysis is guided by the human capital, segmented labor market, and discrimination theories. To assess the separate effects of occupational segmentation and discrimination in the allocation of occupations and wages, we conceptualize the process of earnings attainment as occurring in three stages: initial occupational achievement, final occupational achievement after the accumulation of experience, and, contingent on the former, final earnings attainment. Our analysis of data from the German Socioeconomic Panel suggests a high degree of initial occupational segmentation, with mmigrants being less able to translate their human capital into a good first job than natives. We also find that immigrants experienced significant discrimination in the process of occupational attainment, yielding little job mobility over time, and a widening of the status gap between Germans and guestworkers. Holding occupational status constant, however, we find less evidence of direct discrimination in the process of earnings attainment. Although immigrants achieved lower rates of return to technical or vocational training than natives, their wage returns to experience, hours worked, years since migration, and academic high school were greater, yielding significant earnings mobility over time.     

Three years later: the adaptation process of 1980 (Mariel) Cuban and Haitian refugees in South Florida

In recent years, southern Florida has experienced rapid new inflows of immigrants from Central America and the Caribbean. Since the arrival in 1980 of Mariel (Cuban) and Haitian immigrants to this area, a great deal of speculation has emerged as to the adaptation of these two groups to south Florida and the impact which their presence has wielded on the social and economic arenas of that region. In this paper, we present selected background characteristics of representative samples of both groups and discuss our empirical findings with regard to the labor market experiences, social networks, and educational experiences of the immigrants included in our sample. While the two groups minimally differ from earlier cohorts of their compatriots entering south Florida, their experiences since arriving in Florida have been quite different. Both the Cuban and Haitian immigrants arriving in 1980 demonstrate higher levels of unemployment than their counterparts who arrived earlier; however, the existence of the Cuban economic enclave in Miami did facilitate the entry of a greater number of Cubans than Haitians into the formal labor market. Initial evidence indicates that significant numbers of individuals from both groups participate in the informal labor market, often receiving less than the minimum wage.This study was conducted with the support of the Sociology Program, National Science Foundation (Grant #SES-8215567).     

The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995

This paper examines the substitutability or complementarity between Canadian-born and immigrant workers. These are examined by estimating a set of wage equations using a generalized Leontief production function. The paper finds that, in general, there is no displacement of Canadian-born workers by immigrants. Recent immigrants affect the native-born positively, while older immigrants are neither substitute nor complement for natives. However, the effects differ across industries. Overall, the evidence that immigrants harm the opportunities of native-born workers is scant.

International labor migration and domestic labor supply

Prominent among the variety of issues raised by the immigration of labor are its effects on domestic wage rates and labor supply. In contrast to the existing literature, this paper constructs a dynamic, general equilibrium framework to study the relationship between international labor migration and domestic labor supply. The general equilibrium nature of the model enables us to endogenize the pattern of labor migration. The effect of labor migration on domestic wage rates and labor supply is shown to depend on the pattern of labor migration. If the substitution effect dominates the income effect in labor supply, the domestic supply of labor necessarily decreases in response to an inflow of migrants. This happens even if immigrants, through their savings behavior, cause an increase in the domestic capital-labor ratio and wage rate. Similarly, if the dominant effect is the income effect, the immigration of labor necessarily increases the domestic supply of labor.I wish to thank Oded Galor, Harl Ryder, Kalpana Kochhar and two referees for valuable comments. The opinions expressed in this paper are my own and do not necessarily reflect the views of Joel Popkin and Company.     

How much did immigrant “quality” decline in late nineteenth century America?

Early twentieth century observers argued that recent American immigrants were inferior, and in particular less skilled, than the old. I estimate wage equations for 1909 allowing for different effects by nationality and for different characteristics on arrival. I then apply the estimated wage differentials to the immigrant composition to measure the effect of changing composition on immigrant earnings. Finally I ask how immigrant earning power changed relative to that of native Americans. I conclude that immigrant “quality” in terms of earnings did decline due to shifting composition but these effects are very small compared with those reported in studies of the post-second World War period. Received: 1 September 1997/Accepted: 6 June 1998