The Impact of Immigration on Skills,Innovation and Wages: Education Matters more than where People Come from

With the ensuing immigration reform in the US, the paper shows that targeted skilled immigration into the R&D sector that helps low-skilled labor is conducive for controlling inequality and raising wage. Skilled talent-led innovation could have spillover benefits for the unskilled sector while immigration into the production sector will always reduce wage, aggravating wage inequality. In essence, we infer: (i) if R&D inputs contributes only to skilled sector, wage inequality increases in general; (ii) for wage gap to decrease, R&D sector must produce inputs that goes into unskilled manufacturing sector; (iii) even with two types of specific R&D inputs entering into the skilled and unskilled sectors separately, unskilled labor is not always benefited by high skilled migrants into R&D-sector. Rather, it depends on the importance of migrants’ skill in R&D activities and intensity of inputs. Empirical verification using a VAR model in the context of the USA confirms the conjectures, and the empirical results substantiate our policy-guided hypothesis that skilled immigration facilitates innovation with favorable impact on reducing wage-gap. Inclusive immigration policy requires inter-sectoral diffusion of ideas embedded in talented immigrants targeted for innovation.     

Job Skill and Black Male Wage Discrimination*

Objective. Debate over the causes of wage inequality have raised suggestions that, rather than discrimination, skill differences may be the reason for racial wage disparities. The purpose of this research is to examine what impact on‐the‐job skill differences have on wage inequality. Method. I regress the log wage onto race and a measure of skill. The Multi‐City Study of Urban Inequality Employer Survey is particularly useful in this analysis because it contains the employer's evaluation of the worker's relative skill against other workers. Result. When white and black men have the same employer's competitive performance rating, rather than decreasing racial wage differences, the differences actually increase. Conclusion. The wage gap is not a skills gap, but evidence of racial discrimination in the labor market.     

A longitudinal examination of earnings inequality and mobility among young, full-time workers in the United States

This paper analyzes longitudinal data on earnings inequality and mobility for young, year-round full-time wage and salary workers in the United States. In general, we find that although real earnings across quintiles increased during the 1990s, earnings inequality continued to grow and upward earnings mobility declined slightly during the decade.     

网络空间性别不平等的再生产:互联网工资溢价效应的性别差异——以第三期妇女地位调查为例

本文通过倾向值匹配的方法发现：在控制了其他因素之后,互联网使用者的平均工资收入是非使用者的1.38倍;同时,互联网溢价效应存在着显著的性别差异,女性的互联网工资溢价为男性互联网工资溢价的90.6%。此外,本文发现,互联网工资溢价效应与人们的网络行为密切相关。男性相比女性,具有更强烈的使用互联网资源进行再学习和人力资本再积累的偏好;在女性互联网使用者之间,性别观念更平等的女性具有更强烈的使用互联网资源进行再学习和人力资本再积累的偏好。在传统的网络空间性别不平等的研究框架下,本文着重于探析性别文化观念如何影响人们对互联网的使用偏好和使用方式,从而成为导致网络空间性别不平等的再生产的重要原因和机制。     

Collective bargaining levels,employment and wage inequality in Spain

After the increase in inequalities following the Great Recession, studies on wage bargaining systems have increasingly focused on wage inequality. This research examines wage inequality associated with collective bargaining levels in Spain, based on matched employer–employee microdata and quantile regression methods. These methods are applied across the wage distribution, following the method proposed by Firpo et al. (2011), to estimate wage premiums associated with agreement levels and to decompose the wage differentials observed at different points of the wage distribution. From the evidence obtained it can be concluded that, although the higher wages found in firm-level agreements are explained by the better observed characteristics of firms and workers covered by these collective agreements, there remains a positive wage premium. Although this premium is seen throughout the wage distribution, it favours mostly workers in the middle and upper-middle end. This slightly increases wage inequality in comparison with sectoral agreements. In contrast, workers without collective bargaining coverage generally suffer a wage penalty. This penalty is only observed on the left of the wage distribution. It becomes a significant wage premium in the upper end of the distribution, which implies a significant increase in wage inequality. In short, the evidence of this research suggests that reducing the coverage of collective bargaining could be associated with a significant increase in wage inequality. A better policy option for countries with a predominant sectoral model, such as Spain, would be to move towards an organized decentralization model. This would cause significant gains in employment as suggested by OECD (2019) and only a slight increase in wage inequality.     

Immigrant Success in the Knowledge Economy: Institutional Change and the Immigrant Experience in Canada, 1970–1995

This research examines how institutional changes associated with the emergence of a "knowledge economy"—specifically the expansion of education and the changing labor market structure —shaped employment experiences of newly arriving immigrants to Canada over the period 1970–1995. Census data on successive cohorts of immigrant men and women (from microdata files for 1981, 1986, 1991, and 1996) show a progressive trend toward lower rates of labor force participation and lower levels of earnings relative to the native-born population, both overall and for most specific origins groups. These trends are only partly attributable to business cycle fluctuations in labor demand. The present article examines the impact of selected educational and labor market changes on successive cohorts of immigrants, using intertemporal substitution methodology. The analysis finds that (1) increased native-born education levels infringe upon the traditional immigrant education advantage, outpacing effects of increased immigrant skill selectivity; (2) increased returns to education among native-born workers do not apply to immigrants; and (3) other institutional obstacles to immigrant success also exist. The declining relative value of immigrant education may be due to the location-specific nature of credential validation processes. Directions for further research and policy analysis are suggested.     

Does globalization drive long-run inequality within OECD countries? A guide to policy making

We analyse around four decades of annual time-series data revisiting the long-run relationship between globalization and income inequality for 24 OECD member countries across different geographical regions, applying the Yamamoto-Kurozumi multivariate vector autoregression (VAR) framework. We observe that rapid globalization is not the key cause of rising long-run intra country inequality. This result is obtained by controlling for growth, terms of trade, minimum wage legislation, and unionization and found robust by further controlling education. Most of the countries in our study with a long-run relationship reveal the robust reverse causal impact of rising globalization on reducing inequality. Our impulse response breakdown across various sub-components of globalization suggests that economic globalization is not a primary contributor to long-run inequality for developed industrialized countries. Our framework guides future research to concentrate more on country-specific relationships, with policy guidance tailored for each country based on their level of economic development and institutional quality.     

Managing Work and Care: A Difficult Challenge for Immigrant Families

This paper explores the strategies used by immigrant families to reconcile work and care for young children in Finland, France, Italy and Portugal. Drawing upon interviews with couples or lone parents who have children below age ten, it shows that immigrant families rely on a diversity of work/care strategies. These strategies include extensive delegation of care (mostly to formal or non‐familial informal care), negotiation of care within the nuclear family (both partners sharing the care responsibilities as well as older child care), mother‐centredness (mothers cutting back on working hours), child negligence (leaving children alone) and the superimposition of care upon work (taking children to work). Almost all immigrant families, but especially first‐generation ones, suffer from the absence of close kin networks to support childcare, strong pressure to work and from work (long or atypical hours) and various integration problems such as social isolation, lack of information on services, and problems with housing. However, our findings show that migration patterns, among other factors, have a significant impact on work/care strategies. Highly qualified “professional migration” is more associated with extensive paid delegation (often private and high‐cost), “marriage migration” with mother‐centredness, and “unskilled worker migration” with low‐cost solutions supplemented by workplace care, older child care and negligence. First‐generation unskilled worker migrant families are more exposed to occupational and residential segregation, atypical working hours, low earnings and difficulties in managing work and care for young children. Findings point to the still weak regulatory function of the different welfare states in the protection of these families.     

Job Mobility and Early Career Wage Growth of White,African‐American,and Hispanic Women*

Objective. This article examines whether and how young women's job mobility influences racial and ethnic wage‐growth differentials during the first eight years after leaving school. Methods. We use the NLSY‐79 Work History File to simulate the influence of job mobility on the wages of skilled and unskilled workers. Results. African‐American and Hispanic women average less job mobility than white women, especially if they did not attend college. Unskilled women who experience frequent job changes during the first four postschool years reap positive wage returns, but turnover beyond the shopping period incurs wage penalties. Job mobility does not appear to boost wage growth for college‐educated women. Conclusions. Among unskilled women, race and ethnic wage disparities partly derive from group differences in the frequency of job changes, but unequal returns to job mobility drive the wage gaps for skilled women. We discuss several explanations for these disparities.     

Behavioral responses and the distributional effects of the Russian ‘flat’ tax

This paper simulates the distributional impact of the Russian personal income tax (PIT) following the flat tax reform of 2001 using data from the Russian Longitudinal Monitoring Survey. I decompose the change in the distribution of net income into a direct (tax) effect and an indirect effect. The indirect effect is further decomposed into evasion and productivity effects using existing estimates of these respective elasticities. As expected, the direct tax effect increased net income inequality. Changes in the pre-tax distribution (indirect effect), on the other hand, had a large negative impact on inequality thus leading to an overall decline in net income inequality. I also find that the tax-induced evasion response increased reported net income inequality while reducing consumption inequality. To the extent that consumption approximates actual income, these results demonstrate that the flat tax reform had a much smaller effect on actual income inequality than on reported income inequality. More importantly, relative to non-tax factor, the reform had little overall effect on income inequality. This suggests that objection to flatter tax schedules on the grounds of income inequality is mostly misguided, especially in transitional countries with high levels of evasion.     

Secondary school dropout and work outcomes in ten developing countries

This paper analyzes the impact of secondary school dropout on the work outcomes of young people in ten developing countries. Understanding such a phenomenon is important because it may affect work prospects, exacerbate income inequality and determine macroeconomic lasting effects given that the formation of a skilled workforce is a key element of economic development and growth.When accounting for endogeneity, we find that secondary school dropout decreases the probability of being employed in non-elementary occupations, suggesting that unskilled workers fail to meet the increasing demand for a skilled workforce. Secondary school dropout, indeed, hinders the accumulation of adequate levels of human capital and anticipates entry into the unskilled labor market.Thus, policy-makers should aim at the extension and efficacy of compulsory education to the secondary level to avoid future under-education problems to promote a skilled workforce and encourage economic development and growth in the long run.     

The Lottery and Income Inequality in the States*

Objective. Since the early 1970s, income inequality in the United States has increased dramatically. We examine the impact of state lotteries on income inequality in the American states from 1976–1995. Methods. We use cross‐sectional time‐series data to evaluate the effect of lotteries as well as those of other state tax policies, redistributive programs, and demographic factors on income inequality. Results. We find that state lotteries foster income concentration. Ceteris paribus, states with lotteries have higher levels of income inequality than those states without a lottery. We also find that additional demographic and policy factors have an impact on income inequality in the states. Conclusions. One of the most important policy‐oriented determinants of income inequality is the lottery and a significant portion of the increase in income inequality over our two‐decade time period is attributable to the increasing prevalence and popularity of state lotteries.     

Moderate wage increases and flexible labour contracts to protect employment in Colombian manufacturing

Based on conditional and unconditional demands for labour, we exploit the variations of real minimum wage across manufacturing subsectors to present evidence that this variable affects formal employment. The long-term elasticity of labour demand to the minimum wage is around –0.7. Accordingly, increases in the minimum wage lead to job losses for unskilled labour, mainly in plants with fewer than 100; thus, small increases in the minimum wage are desirable to protect employment. Labour demand is highly cyclical: the output elasticity is about 1.7. Thus, some flexibility in labour contracts is desirable to reduce the link between employment and variation of plants’ sales. Open-ended labour contracts might allow reductions of the nominal wage rather than inducing job losses during periods of severe slumps, as has happened during the COVID-19 pandemic.     

Fatherhood and immigration: challenging the deficit theory

Most immigration studies focus on the negative consequences of immigration for families and for parenting. Immigration is also viewed as a factor that undermines fathers’ capacity to implement their fathering roles. The impact of immigration on fathers has received very little attention. This paper is based on 54 interviews with immigrant fathers to Canada and Israel. Based on qualitative data, the paper investigates immigrant fathers’ perceptions of fatherhood in the midst of cultural change. This paper challenges the widely held notion that immigration itself is a risk factor for fatherhood. It focuses rather on the systemic barriers and obstacles facing immigrant fathers in their new country and the positive opportunities this change presents. Implications for intervention and policies concerning immigrant families are discussed.     

Trends of Income Inequality Among the Elderly in Korea

This study investigates the overall trend of inequality among the elderly in Korea and to examine what the most influential factor is for these changes. Although inequality among the elderly is far greater than it is for any other group, little attention has been given to how inequality changes over time. Used are data from the Urban Household Survey with five‐year intervals from 1986 to 2006. The results show that inequality within a cohort increases over time and that earnings and benefits from occupational retirement plans are the most influential factors on overall inequality changes. In addition, the impact of public transfers has gradually increased during the past twenty years. The results imply that our society needs to enact a social policy for lessening earnings inequality in the labor market and to increase public transfers for the elderly.     

FROM HARVESTER TO DE-REGULATION: WAGE EARNERS IN THE AUSTRALIAN WELFARE STATE

The significance of the Harvester Judgment in 1907 was not only in the establishment of a ‘fair and reasonable’ wage, which became known as the basic wage , but also in the principle that wages had to meet at least the basic social needs of the worker's family. Income earned through employment was thus regarded as primary welfare . These principles in wage determination were discarded in the 1960s and the de-regulation policies of the 1980s further increased the division between employment and social needs. Exacerbated by the endemic high levels of unemployment, the progressive de-regulation of the labour marked since the 1980s has been one of the most significant causative factors in the growing inequality in Australia.     

Effects of US citizenship on wages of Asian immigrant women

The article presents a cross‐sectional study on the effects of US citizenship on wages of Asian immigrant women. The findings show that US citizenship positively moderated the relationship between sample characteristics and wages. Higher education (university and graduate school) significantly boosts the wage level of Asian immigrant women who have US citizenship. However, such positive influence does not exist for Asian immigrant women without US citizenship. This finding suggests that Asian immigrant women without US citizenship still face a glass ceiling. Key Practitioner Message: ● Educate immigrants about the importance of and potential benefits associated with citizenship.     

Inclusive Europe: the impact of the EU Cohesion Policy on immigrants’ economic integration in Italy

By examining the impacts of the Cohesion Policy on immigrants’ economic integration, this study provides evidence on how the European Union promotes inclusion. Focusing on Italian municipalities, we estimate the causal effects of immigrant-related projects on the wage gap between natives and immigrants during the 2007–2018 period. We find a significant decrease in the average wage gap of approximately 7.6%. Specifically, Cohesion Policy played a positive role in immigrant economic inclusion through interventions targeted at supporting the employment and mobility of workers. For the inclusive dimension of the Next Generation EU program, this is key evidence to start with.     

Analyzing Wage Differential by Gender Using an Earnings Function Approach Further Evidence from a Small Developing Economy

This study uses the primary data from Fiji to examine if gender differential with respect to wages exists and if education plays an important role in the prevalence of the wage gap in general. The results of the study indicate that the inconsistency in wages is affected by both education and gender variables. This high disparity in wages based on gender raises serious questions about the government's ability to meet the MDG targets as far as the reduction of gender inequality is concerned.     

The impact of infectious diseases on remittances inflows to India

The economic crisis triggered by the COVID-19 pandemic seems to be grimmer when observed from the migration perspective. Remittances play a vital role in economic development of India through promoting output growth, household spending on health and education, poverty alleviation, financial inclusion and entrepreneurship. Given the importance of remittances, it is important to analyse how the current pandemic will influence the remittances inflows to India. Towards this end, the study employs a gravity model approach to the determinants of remittances with special attention to the impact of infectious diseases in the host countries. The present study constructs a dataset on bilateral remittances from 99 destination countries and utilizes the data on prevalence of infectious diseases in the host countries during the period 2000–2018 to assess the impact of the latter on the inflows of remittances to India. The results of the study based on a variety of estimators tackling various econometric issues suggest a statistically significant negative impact of prevalence of infectious diseases in the host country on the inflows of remittances. The negative impact of infectious diseases on remittances suggest that while there are downside risks in the wake of current pandemic, the scenario does not seem to be that bleak as the remittances to India are countercyclical with respect to economic growth in the home country and largely decoupled from host country macroeconomic fundamentals. As the remittances act as shock absorbers during the time of low economic growth in the home country, India must further build up a conducive eco system to nurture these valuable foreign exchange in a well directed manner.