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.     

Low-skilled immigrant entrepreneurship

More than ? of the foreign born workforce in the US have no schooling beyond high school and about 20% of the low-skilled workforce are immigrants. More than 10% of these low-skilled immigrants are self-employed. Utilizing longitudinal data from the 1996, 2001 and 2004 Survey of Income and Program Participation panels, this paper analyzes the returns to self-employment among low-skilled immigrants. We find that the returns to low-skilled self-employment among immigrants is higher than it is among natives but also that wage/salary employment is a more financially rewarding option for most low-skilled immigrants. In analyses of earnings differences, we find that most of the 20% male native-immigrant earnings gap among low-skilled business owners can be explained primarily by differences in the ethnic composition. Low-skilled female foreign born entrepreneurs are found to have earnings roughly equal to otherwise observationally similar self-employed native born women.     

Gender discrimination and self-employment dynamics in Europe

This paper examines the effect that gender-based earnings discrimination has on self-employment dynamics among females, with a focus on four countries in Western Europe. Using data from the European Community Household Panel in the 1999–2001 time period, we test the hypothesis that the probability of moving into self-employment is positively related to prior earnings discrimination, as measured by unexplained deviations from expected (male) earnings. Our findings suggest that women who have lower than expected wage sector earnings are more likely to leave wage employment in the following year. The results with respect to discrimination, per se, however, are mixed.     

Understanding the workweek of foreign born workers in the United States

I analyze the length of the workweek of foreign-born workers in the US I concentrate on workers supplying long hours of work—50 or more weekly hours and document that immigrants are less likely than natives to work long hours. Surprisingly, these differences are greatest among highly educated and salary paid workers, and persists even after conditioning for demographic characteristics. I explain these differences with two within occupation characteristics. First, relative to natives, immigrants are less likely to supply long work weeks if they work in occupations where the immigrant-native earnings differential is big. Second, immigrants are also less likely to supply long work weeks when they work in occupations with a wide dispersion of earnings. This second result is important, because the occupation dispersion of earnings has been used to characterize changes of the worker’s earnings over the worker life cycle (Bell and Freeman, Labour Economics: 8(2), 2001a; Working Time in Comparative Perspective, 2001b; Kuhn and Lozano, Journal of Labor Economics:26(2), 311–344, 2008), and a good measure of the incentives to supply long hours of work.     

Immigration,labor force integration and the pursuit of self-employment

A correspondence analysis was used to examine the entire working life cycle of Canadian-born male age-education cohorts and immigrant male age-education cohorts who arrived during 1945-61. Data were drawn from the 1961 and 1971 census databases as well as the 1981 and 1991 public individual files. Findings support the existence of a split labor market based on immigrant status, particularly at the low end of the schooling spectrum. In 1961, immigrants with low levels of schooling were closely associated with the wage construction sector, whereas Canadian-born males below the high school level would most likely gravitate towards consumer services. Meanwhile, immigrants with a high school education were likely to be in consumer services; whereas, Canadian-born males with a high school education were closely aligned with public administration and distributive services. Moreover, immigrants with higher levels of schooling were less likely to work in ethnically dominated markets, while immigrants with low schooling moved into the self-employed construction sector. The existence of a split in the labor market was evident among workers with lower levels of schooling compared with university-educated workers.     

Employment-based retirement plan participation: geographic differences and trends, 2010

LATEST DATA: This Issue Brief examines the level of participation by workers in public- and private-sector employment-based pension or retirement plans, based on the U.S. Census Bureau's March 2011 Current Population Survey (CPS), the most recent data currently available (for year-end 2010). SPONSORSHIP RATE: Among all working-age (21-64) wage and salary employees, 54.2 percent worked for an employer or union that sponsored a retirement plan in 2010. Among full-time, full-year wage and salary workers ages 21-64 (those with the strongest connection to the work force), 61.6 percent worked for an employer or union that sponsors a plan. PARTICIPATION LEVEL: Among full-time, full-year wage and salary workers ages 21-64, 54.5 percent participated in a retirement plan. TREND: This is virtually unchanged from 54.4 percent in 2009. Participation trends increased significantly in the late 1990s, and decreased in 2001 and 2002. In 2003 and 2004, the participation trend flattened out. The retirement plan participation level subsequently declined in 2005 and 2006, before a significant increase in 2007. Slight declines occurred in 2008 and 2009, followed by a flattening out of the trend in 2010. AGE: Participation increased with age (61.4 percent for wage and salary workers ages 55-64, compared with 29.2 percent for those ages 21-24). GENDER: Among wage and salary workers ages 21-64, men had a higher participation level than women, but among full-time, full-year workers, women had a higher percentage participating than men (55.5 percent for women, compared with 53.8 percent for men). Female workers' lower probability of participation among wage and salary workers results from their overall lower earnings and lower rates of full-time work in comparison with males. RACE: Hispanic wage and salary workers were significantly less likely than both white and black workers to participate in a retirement plan. The gap between the percentages of black and white plan participants that exists overall narrows when compared across earnings levels. GEOGRAPHIC DIFFERENCES: Wage and salary workers in the South and West had the lowest participation levels (Florida had the lowest percentage, at 43.7 percent) while the upper Midwest, Mid-Atlantic, and Northeast had the highest levels (West Virginia had the highest participation level, at 64.2 percent). OTHER FACTORS: White, more highly educated, higher-income, and married workers are more likely to participate than their counterparts.     

Transmission of self-employment across immigrant generations: the importance of ethnic background and gender

This paper studies the intergenerational transmissions of self-employment abilities among immigrants in Sweden. The results show that second-generation immigrants are over-represented in self-employment compared to natives. Male immigrants from countries neighbouring to Sweden and natives alike seem to use both mothers and fathers as role models in their self-employment decision, but the father is the stronger role model among male immigrants from more geographically distant regions. Female immigrants use both their father and their mother as role models in their self-employment decision. Furthermore, male immigrants and male natives tend to become self-employed in the same business sector as their fathers; female immigrants and female natives with self-employed parents are over-represented in self-employment but not necessarily in the same business sector as their parents.     

In Search of a Better Life: The Experiences of Working Poor Immigrants in Vancouver,Canada

We utilized data from 72 in‐depth interviews with immigrant hotel and hospital support workers employed in the service sector of Vancouver, Canada to analyse migration decisions and subsequent experiences after arrival. We found that migrant social networks were centrally important, both as a stimulus for migration and in shaping post‐arrival experiences. At the same time, the working conditions faced by immigrants after arrival, such as low pay and long work hours, resulted in serious challenges. While some struggled with multiple jobs to make ends meet, others felt their economic circumstances prevented them from even bringing their children to Canada. In some cases, children were returned to their country of origin. Features of low‐wage service sector jobs also limited the time available for participation in community life. The findings both support and advance recent theoretical contributions about the incorporation of immigrants in the United States and Canada. As immigrants frequently face occupational downgrading and are channelled into low‐wage service sector jobs, the conditions of work and social policies are important for their post‐arrival experiences and incorporation. Going beyond traditional conceptions of citizenship in the immigration literature, some respondents acted through their union and community organizations to attempt to change society and improve their fortunes. While some sought social justice through political activism, others used their limited family and community life time to reterritorialize values from their countries of origin. Part of their activism was transnational, such as sending remittances to help loved ones back home, but other involvement included participation in organizations with the aim of promoting social justice or improving life in their new country. The experiences of immigrant service sector workers in Vancouver suggest a need for greater emphasis on the role of both immigrant and non‐immigrant specific social and labour policies for understanding immigrant incorporation in North America.     

Immigration and the earnings of youth in the U.S.

"This article reports findings that have emerged from an effort made at statistically measuring the effects of immigration on the earnings of U.S.-born youth. The presence of immigrants arriving before 1965 has a positive impact on youth earnings. Recently arrived immigrants impact negatively, however. These results are consistent with recent findings that the skill level of immigrants arriving within the last two decades is lower relative to that of immigrants arriving earlier. The results also show that the negative effects diminish as the youth ages, reflecting skill acquisition and job mobility of the young worker into jobs less vulnerable to competition from immigrant workers."     

Earnings differentials of Mexican immigrants: The case of Turkey processing

This paper adopts a case study methodology to examine the determinants of earnings differentials between Mexican immigrant and domestic labor groups. A two stage structural model of earnings is developed which analyzes institutional processes involved in internal labor allocation and wage determination. The analysis points to the influence of social processes (surrounding the firm's internal wage structure) on the earnings of Mexican immigrants and domestic labor groups. In addition, the study suggests the possibility that captivity mechanisms may be present in allocating Mexican immigrants and local women to the lowest paid and most undesirable jobs within production. The presence of captivity mechanisms raises the possibility that the lower earnings of Mexican immigrants and women involves bias.     

The Causes and Consequences of Immigrant Labour in the Construction Sector in Malaysia

Malaysian construction is highly dependant on immigrant labour; immigrants account for nearly 70 per cent of its workforce. Although they have aided the sector's rapid expansion, it has not been without costs. This paper examines the impact of immigrant labour on construction. The main finding is that immigrants, being largely unskilled, did not contribute to skill formation. Instead, they accumulated skills on‐the‐job, which were lost when they returned home. There was no evidence that immigrants displaced domestic workers since they were concentrated in jobs rejected by Malaysians. Furthermore, unlike in earlier periods, legal immigrants were no longer a cheap option, given the regulations governing their employment. They were not used to cut costs per se, but were used because domestic workers were not available in sufficient numbers. Despite the large immigrant presence, the general wage level increased, though admittedly not as rapidly as it might have in their absence. The reliance on immigrant workers has increased the need for supervision and quality control, thereby reducing the savings in cost; nonetheless, immigrants have helped keep costs in check. Surprisingly, rising wages and the continued shortage of labour have not led to a widespread adoption of labour‐saving methods. This is partly because productivity increases have managed to outpace wage increases, though this advantage is petering out. Also, immigrant presence has kept wages, as a proportion of total costs, manageable. The over reliance of the sector on immigrant labour is not desirable, especially since the majority is drawn from one source ‐ Indonesia. Any disruption of supply from this source can undermine the Malaysian economy. To avoid this, Malaysia must vary its source of immigrant labour and intensify efforts to attract domestic workers by improving conditions in construction.     

Immigrant Wage Disadvantage in Sweden and the United Kingdom: Wage Structure and Barriers to Opportunity1

This article examines immigrant/native-born wage inequalities among workers in two Western European countries: Sweden, social democratic and with comparatively low wage dispersion, and the United Kingdom, economically liberal and with comparatively high wage dispersion. The analysis includes immigrants from 26 countries of origin. Findings demonstrate that inequalities in terms of real wages are smaller in more egalitarian Sweden. However, in terms of relative positions within the labor market, inequalities are if anything smaller in the UK. These findings highlight the role of wage dispersion in magnifying immigrant disadvantage, but also the limits of wage compression for ameliorating barriers to immigrant opportunity.     

Are immigrants and natives perfect substitutes in production?

This article discusses whether immigrant and native labor are perfect substitutes in production when conventional measures of skill and demographic characteristics are held constant. The ratio of immigrant to native labor and the ratio of immigrant to native earnings are studied in 5 major immigrant receiving countries with other variables held constant. Countries included are 1) the US and Britian, where the foreign born are only about 5% to 6% of the adult male labor force; 2) Canada and Australia, where they are about 20% and 30%, respectively; and 3) Israel, where the foreign born are about 3/4 of the Jewish adult male labor force. The relative earnings of adult male immigrants and the adult male native-born sons of immigrants are found to be lower when the labor supply of immigrants is greater. The estimated elasticity of substitution between immigrant and native labor is high, but significantly less than infinity. Workers who are relatively more intensively in the favorable self selection characteristics of immigrants are not perfect substitutes for workers relatively more intensive in country-specific skills. As immigrants increase in the labor force, their relative earnings tend to fall, although the decline is small. Economies have sufficiently flexible markets and develop institutional arrangements to mitigate the relative fail in immigrant earnings as their relative supply increase.     

Labor market outcomes of immigrant women in the United States: 1970 to 1990

42% of immigrant workers in the US are women. Data from the 1970, 1980, and 1990 US censuses are analyzed in the study of differences in labor market outcomes between US-born and immigrant women, and among immigrant women born in different countries or regions of the world. There was little difference between US-born and immigrant women as a whole in 1970. However, over the next 20 years, immigrants women's labor force participation rate and weekly earnings relative to natives became lower, and their unemployment rates became higher. By 1990, the wage gap was 14%. At the same time, the share of self-employed women and the amount of time worked among employed women were almost the same for immigrant women and the US-born throughout the period 1970-90. Immigrants born in the UK, Canada, Europe, Japan, Korea, China, the Philippines, and the Middle East have had steady or improved wages and unemployment relative to US-born women. Immigrants from Mexico and Central America have experienced relatively high unemployment and low earnings, with the wage gap reaching 35% in 1990. Disparities in the number of completed years of schooling explains a substantial share of the observed differences in labor market outcomes.     

Education,Skills, and Wage Gaps in Canada and the United States

We analyse data from the Programme for the International Assessment of Adult Competencies to reveal that immigrants in Canada and the United States make over $200 less per month than native‐born workers. In the United States, immigrants disproportionately work in low‐wage occupations, leading to large mean national differences between immigrants and native workers. The wage differential disappears after accounting for education and cognitive skills, indicating policies must focus on reducing education and skill gaps in the United States. In Canada, an immigrant wage gap persists in nearly all occupational fields, suggesting that the better skilled and educated immigrants in Canada are not receiving the same wage premium as native workers. We close with implications for policy and future research.     

Immigrant incorporation in the garment industry of Los Angeles

This study expands immigrant social network theory and examined employment patterns in the garment industry in Los Angeles, California, among Latino workers employed by Asian immigrant entrepreneurs. The study determined that a large percentage of immigrant employees found their jobs through the immigrant economy. Entrepreneurship increased the supply of local jobs and expanded the economy at destination at no expense to natives. Immigrant entrepreneurs bought firms from nonimmigrant owners or started new ones with an immigrant labor supply. Massey's index is flawed due to its exclusion of the role of entrepreneurs. Migration networks facilitate entrepreneurship, but some ethnic groups have fewer entrepreneurs, such as Mexicans and Central Americans. A 1993 Los Angeles survey identified 3642 garment factories in its county. Mean employment was 27.1 persons. The garment industry was the 4th largest industry in the area in 1996, with 98,700 employees. It represented 6% of all wage and salary employees in the City and 5.5% of the immigrant labor force in the County in 1990. 93% of garment workers in 1990 were immigrants. It is estimated that 51% of garment factory owners were Asians; most employees were Latinos. Census figures on sewing machine operators indicated 47.3% of owners were Whites and 42.45 were Asians. 53.3% of employees were other ethnic groups, 14.5% were Asians, and 32.2% were Whites. It is estimated that 47.2% of total employment was due to the immigration economy. 71.5% of the total employment in the garment industry was in the immigrant sector.     

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.     

Immigrants working with co‐ethnics: Who are they and how do they fare?

Participation in ethnic economies has been regarded as an alternative avenue of economic adaptation for immigrants and minorities in major immigrant‐receiving countries. This study examines one important dimension of ethnic economies: co‐ethnic concentration at the workplace. Using a large national representative sample from Statistics Canada’s 2002 Ethnic Diversity Survey, this study addresses four questions: (1) what is the level of co‐ethnic concentration at the workplace for Canada’s minority groups? (2) How do workers who share the same ethnicity with most of their co‐workers differ from other workers in socio‐demographic characteristics? (3) Is higher level of co‐ethnic concentration at the workplace associated with lower earnings? (4) Is higher level of co‐ethnic concentration at the workplace associated with higher levels of life satisfaction? The results show that only a small proportion of immigrants and the Canadian‐born work in ethnically homogeneous settings. In Canada’s eight largest metropolitan areas about 10 per cent of non‐British/French immigrants share a same ethnic origin with the majority of their co‐workers. The level is as high as 20 per cent among Chinese immigrants and 18 per cent among Portuguese immigrants. Among Canadian‐born minority groups, the level of co‐ethnic workplace concentration is about half the level for immigrants. Immigrant workers in ethnically concentrated settings have much lower educational levels and proficiency in English/French. Immigrant men who work mostly with co‐ethnics on average earn about 33 per cent less than workers with few or none co‐ethnic coworkers. About two thirds of this gap is attributable to differences in demographic and job characteristics. Meanwhile, immigrant workers in ethnically homogenous settings are less likely to report low levels of life satisfaction than other immigrant workers. Among the Canadian‐born, co‐ethnic concentration is not consistently associated with earnings and life satisfaction.     

Does Public or Not-for-Profit Status Affect the Earnings of Hospital Workers?

This paper examines the earnings differentials among hospital workers in the public, private nonprofit, and private for-profit sectors. Utilizing data from the 1995 through 2007 Current Population Surveys, unadjusted earnings are highest in the private nonprofit sector and lowest in private for-profit firms. Once measurable characteristics are accounted for, health practitioners in for-profit and nonprofit hospitals earn similar wages while public sector workers earn small but significant wage penalties. Nonprofit hospitals tend to attract workers with higher levels of skill as measured by schooling and potential experience. This could be explained in part by worker sorting and lower cost containment incentives in nonprofit hospitals. Wage change analysis using pooled 2-year panels constructed from the CPS indicate no significant differences in earnings between the three sectors of employment. Whatever the role of the sector of employment on the overall earnings of hospital workers, there is sufficient worker mobility within the industry to largely eliminate systematic wage differences across type of hospital.

Will They Ever Converge? Earnings of Immigrant and Canadian-born Workers over the Last Two Decades1

Using Census data covering the 1980–2000 period, this article examines what outcomes would be necessary for today's recent immigrant cohorts to achieve earnings parity with Canadian‐born workers. Our results show that today's recent immigrants would have to experience a drastic steepening of their relative age‐earnings profile in the near future for their earnings to converge with their Canadian‐born counterparts. The reason is simple: the greater relative earnings growth experienced by recent immigrant cohorts has only partially offset the drastic deterioration in their relative earnings at entry.