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.     

Immigrant employment and earnings growth in Canada and the USA: evidence from longitudinal data

We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the USA using nationally representative longitudinal datasets covering 1996–2008. Models with person fixed effects show that, on average, immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the USA, on the other hand, experience positive annual growth in all three domains relative to US-born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the USA than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.     

Declining employment success of immigrant males in Sweden: Observed or unobserved characteristics?

Focusing on Nordic and Yugoslavian immigrant males, we study the determinants of employment success of natives and immigrants in Sweden. Furthermore, we investigate the reasons behind the arising gap in employment success between Swedes and immigrants from 1970 to 1990. In a decomposition analysis, we find that the main part of the decline in the employment probability of immigrants relative to Swedes over time is explained by a change in coefficients (unobserved characteristics) rather than a change in determinants (observed characteristics). Received: 22 June 1998/Accepted: 23 March 2000     

Ungleichheiten auf dem ?sterreichischen Arbeitsmarkt

Immigrants tend to be less successful on the Austrian labour market compared to their native-born counterparts. Prior research on the reasons for ethnic inequalities focuses mainly on individual characteristics as well as on their context dependence. Using microcensus data, this article explores the signalling value of foreign and native educational capital on the Austrian labour market. The results show that immigrants born in the new EU-countries, Serbia, or Turkey are exposed to statistical discrimination on the Austrian labour market: immigrants with higher qualifications experience disadvantages while those with lower qualifications are advantaged. The returns for second generation immigrants are close to those for Austrians without immigrant background.     

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     

Unemployment and earnings for second generation immigrants in Sweden. Ethnic background and parent composition

This study sheds light on the labour market outcomes of children born to immigrants in the destination country, i.e. second generation immigrants. The study has the advantage of being able to (i) identify several different ethnic backgrounds and (ii) identify the parent composition, i.e. whether one or both parents of the individual are foreign born. The labour market outcomes of second generation immigrants mirror those of first generation immigrants in that we find heterogeneity in labour market outcomes to be associated with ethnic background. Moreover, these outcomes, especially for Southern and non-European backgrounds, are much worse than those for native-born with a Swedish background. Finally, the outcome is more favourable if one parent is born in Sweden compared to having both parents foreign born, especially if the mother is native born.All Correspondence to Dan-Olof Rooth. We are grateful for several helpful comments and suggestions from two anonymous referees. A research grant from the Swedish Council for Working Life and Social Research is gratefully acknowledged. Responsible editor: Christoph M. Schmidt.     

Factors Shaping Workplace Segregation Between Natives and Immigrants

Research on segregation of immigrant groups is increasingly turning its attention from residential areas toward other important places, such as the workplace, where immigrants can meet and interact with members of the native population. This article examines workplace segregation of immigrants. We use longitudinal, georeferenced Swedish population register data, which enables us to observe all immigrants in Sweden for the period 1990–2005 on an annual basis. We compare estimates from ordinary least squares with fixed-effects regressions to quantify the extent of immigrants’ self-selection into specific workplaces, neighborhoods, and partnerships, which may bias more naïve ordinary least squares results. In line with previous research, we find lower levels of workplace segregation than residential segregation. The main finding is that low levels of residential segregation reduce workplace segregation, even after we take into account intermarriage with natives as well as unobserved characteristics of immigrants’ such as willingness and ability to integrate into the host society. Being intermarried with a native reduces workplace segregation for immigrant men but not for immigrant women.     

Blurring Boundaries? Immigration and Exogamous Marriages in Hong Kong

This article uses micro‐data from the Hong Kong census since 1991 to report trends in the integration of Chinese residents who were born either in Colonial Hong Kong or in Mainland China. We focus on marital exogamy by nativity for women aged 25–34. From 1991 to 2011, we found an increasing likelihood for Hong Kong native men and Mainland women to be married to one another. This increase reflects cross‐border marriages. Such exogamous marriages were associated with a lower degree of educational homogamy, since Hong Kong‐born men tend to be more educated than their Mainland spouses. They are also older than their immigrant wives. Implications for social distance between natives and immigrants in this context of exogamous marriages are discussed.     

Mobility,Stagnation, or Attrition? Diverse Earning Trajectories in a Cohort of Foreign‐born Men

Researchers and policymakers frequently debate about the integration of immigrants into the US economy. These debates are often based on limited data that do not capture the diversity of immigrants who arrived in the later twentieth century. Related research has also struggled to incorporate the experience of short‐term immigrants or immigrants who move in and out of the labor force. Using records from the Social Security Administration, we track the complete cohort of foreign‐born men who received social security numbers in 1978 through their subsequent working years and characterize their earning trajectories. We find that the share of foreign‐born men with low earnings declined over time, mainly due to attrition from the formal labor force. We also show, for the first time, that immigrants’ employment and earning histories vary considerably by their countries of origin: while those from several countries in Asia and Africa experienced substantial earnings growth and tended to stay in the United States for the long term, men from Central America and the Caribbean experienced more stagnation and had high levels of temporary and permanent attrition from the formal labor force. We end by discussing the historical contingencies and socioeconomic contexts—in sending countries and the United States—that shaped these trajectories.     

Ethnic identity, majority norms, and the native–immigrant employment gap

Earlier studies do not agree on whether ethnic identity, i.e., immigrants’ attachment to the home country and the host country, can explain lower employment outcomes among immigrants. This study investigates the relationship between employment and ethnic identity and complements the literature by capturing a novel dimension of ethnic identity: openness to majority norms. Reproducing measures from earlier studies, I find that immigrants’ employment outcomes do not systematically associate with their ethnic identity. However, immigrants who share social norms with the majority experience significantly better employment outcomes, particularly first-generation immigrant women. Furthermore, I show that interethnic differentials in majority norms could account for up to 20 % of the explained part of the employment gap between natives and first-generation immigrants. Those results shed more light on the interethnic employment gap and aspects of immigrants’ identity relevant to economic integration.     

Immigrants and the public sector budget – accounting exercises for Sweden

Net contributions to the public sector budget in Sweden are investigated using large samples of foreign born and native born. The accounts build on various assumptions including that expenditures on public consumption are allocated according to the age of the person. The results indicate that during the period 1983 to 1992 net contributions of immigrants deteriorated. Upon arrival to Sweden, immigrants on average place a burden on the public sector budget but after a few years this no longer applies. Refugees initially put a larger burden on the public sector budget than other immigrants, but such a difference declines with years since immigration. Received: 11 March 1998/Accepted: 31 May 2000     

Parental characteristics and the schooling progress of the children of immigrant and U.S.-born blacks

In this study, I examine disparities in schooling progress among children born to immigrant and U.S.-born blacks. I find that in one- and two-parent families, children born to black immigrants are less likely to fall behind in school than those born to U.S.-born blacks. In two-parent immigrant families, children born to two immigrant parents have a significant schooling advantage over children born to one immigrant parent. While children born to two immigrant parents in the wealthiest black immigrant families do better in the second generation than in the first, the reverse is observed among children in less wealthy families. These findings contribute in two ways to our understanding of the assimilation processes of children born to black immigrant parents. First, they show that there is a positive association between the number of immigrant parents in a family and children’s schooling performance. Second, they suggest that disparities in the assimilation patterns of the children of black immigrants are a likely product of the interaction between their parental characteristics and the socioeconomic circumstances of their families.     

Immigration and county employment growth

Prior literature has found that immigrants have no effect on the wages and employment of natives. However, this literature has not accounted for the possibility that immigrants contribute to employment growth in the areas where they locate. Research on internal migration has found that internal migrants contribute to local area employment growth. In this paper I compare the effects of natives and immigrants on county employment. Results show that the overall immigrant population contributes more to increases in employment than the overall native population. Recent immigrants and recent internal in-movers have similar effects on employment growth. The net contribution of immigrants to employment growth is confined to nonmanufacturing employment.     

A decomaosition of trends in poverty among children of immigrants

Poverty levels among all children in the United States have tended to fluctuate in the past 30 years. However, among the children of immigrants, child poverty increased steadily and rapidly from about 12% in 1970 to 33% in the late 1990s before declining to about 21% in 2000. Using 1970, 1980, 1990, and 2000 Public Use Microdata Samples data, we identified key factors that underlie the fluctuations in immigrant child poverty from 1969 to 1999 and the divergence from children of natives. We found that roughly half the absolute increase in immigrant child poverty can be linked to changing conditions in the U.S. economy that make it more difficult to lift a family out of poverty than 30 years ago. These changes occurred disproportionately among children of parents with lower levels of education, employment, and U.S. experience but not among racial/ethnic minorities. Poverty risks among various racial and ethnic groups converged over time. The relative increase in poverty for immigrant versus native children owes largely to the divergence between immigrant and native families in racial/ethnic composition, parental education, and employment.     

Immigrant quality and assimilation: a review of the U.S. literature

Empirical research on US immigrants is reviewed: their productivity and assimilation; their contribution and use of public services; and their impact on native Americans. I discuss the characteristics of cohorts of immigrants that enter the United States at different times, and then quantify the assimilation of immigrants, typically in terms of economic productivity of immigrants compared with natives. Few have found quantifiable negative effects of immigrants on native wages or unemployment in local labor markets, but a more general equilibrium approach than has been empirically implemented may be needed to draw any conclusions regarding the distributional consequences of immigration. Received: 22 September 1995 / Accepted: 2 March 1997     

Migration Processes,Familial Characteristics,and Schooling Dropout Among Black Youths

This study uses data from the 2000 U.S. census to examine whether the schooling advantage of black immigrants’ children found in previous studies is robust. According to the results, the advantage associated with having migrant parents is not restricted to the children of immigrants. Black migrant parents, regardless of foreign-born status, have children with favorable schooling outcomes. Such parental-level influences, however, seem stronger among some immigrant groups than among native internal migrants. The study also suggests that the collective advantage of the children of immigrants is driven by positive migrant selectivity. Accordingly, comparisons between the children of native migrants and children in various immigrant groups reveal that the immigrant advantage is not robust. In fact, the results suggest that when immigrant ethnicity is considered, some children of immigrants may be disadvantaged relative to the children of native migrants. Among recent migrants, the children of native internal migrants also have more favorable outcomes than the children of immigrants, although these differences disappear after background factors are controlled. Further, internal-migrant and immigrant households are less likely to have characteristics that adversely affect schooling than nonmigrant households. Unsurprisingly, the children of nonmigrants have the worst outcomes among black youths.     

Public policy and the labor market adjustment of new immigrants to Australia

Two separate cohorts of immigrants to Australia are compared in order to assess the potential role of immigrant selection criteria, labor market conditions, and income-support policy in facilitating the labor market adjustment of new arrivals. Although these two cohorts entered Australia only five years apart, their initial labor market outcomes varied dramatically. The results indicate that changes in immigration policy may have led to increased human capital endowments that in turn resulted in higher participation rates and reduced unemployment. At the same time, improvement in Australian labor market conditions and changes in income-support policy over the 1990s – which most likely altered the returns to human capital – were probably instrumental in reinforcing the effects of tighter immigrant selection criteria. As much as half of the fall in unemployment rates among women and one third the decline among men appears to have occurred as the result of changes in the returns to demographic and human capital characteristics. Responsible editor:Christoph M. Schmidt     

Paradox found (again): Infant mortality among the Mexican-origin population in the united states

Recent research suggests that the favorable mortality outcomes for the Mexican immigrant population in the United States may largely be attributable to selective out-migration among Mexican immigrants, resulting in artificially low recorded death rates for the Mexican-origin population. In this paper we calculate detailed age-specific infant mortality rates by maternal race/ethnicity and nativity for two important reasons: (1) it is extremely unlikely that women of Mexican origin would migrate to Mexico with newborn babies, especially if the infants were only afew hours or afew days old; and (2) more than 50% of all infant deaths in the United States occur during the first week of life, when the chances of out-migration are very small. We use concatenated data from the U.S. linked birth and infant death cohort files from 1995 to 2000, which provides us with over 20 million births and more than 150,000 infant deaths to analyze. Our results clearly show that first-hour, first-day, and first-week mortality rates among infants born in the United States to Mexican immigrant women are about 10% lower than those experienced by infants of non-Hispanic, white U.S.-born women. It is extremely unlikely that such favorable rates are artificially caused by the out-migration of Mexican-origin women and infants, as we demonstrate with a simulation exercise. Further, infants born to U.S.-born Mexican American women exhibit rates of mortality that are statistically equal to those of non-Hispanic white women during the first weeks of life and fare considerably better than infants born to non-Hispanic black women, with whom they share similar socioeconomic profiles. These patterns are all consistent with the definition of the epidemiologic paradox as originally proposed by Markides and Coreil (1986).     

The school-to-work transition of 2<Superscript>nd</Superscript> generation immigrants in Denmark

2^nd generation immigrants from less developed countries have less education and a lower employment frequency compared to the native Danish youth. We analyse the school-to-work transition of these groups using panel data for the years 1985–1997. The educational gap between 2^nd generation immigrants and the Danish youth is to some extent explained by age structure, while age does not explain the native-immigrant gap concerning the duration of waiting time until first job and the duration of first employment spell. Instead parental capital and neighbourhood effects seem to play a major role. We find large gender differences among 2^nd generation immigrants in the school-to-work transition.All Correspondence to Nina Smith. Thanks to Thomas Haugaard Jensen, Anne-Sofie Reng Rasmussen and Mette Skak-Nielsen who have done part of the computational work. We also want to thank two anynomous referees and participants in the ESF-conference on Migration and Development in Naples 2000 and the ESPE conference in Athens 2001 for many valuable comments. The project has been financed by the Danish Social Science Research Council (FREJA), the Danish Ministry of Labour and TSER. Furthermore, Helena Skyt Nielsen has been supported financially by the Danish Social Science Research Council (SSF), while this work was undertaken. Responsible editors: David Card and Christopher M. Schmidt.     

Wealth Inequality Among Immigrants: Consistent Racial/Ethnic Inequality in the United States

Wealth is a strong indicator of immigrant integration in U.S. society. Drawing on new assimilation theory, we highlight the importance of racial/ethnic group boundaries and propose different paths of wealth integration among U.S. immigrants. Using data from the Survey of Income and Program Participation and quantile regression, we show that race/ethnicity shapes immigrant wealth inequality across the entire distribution of net worth, along with immigrants’ U.S. experience, such as immigrant status, U.S. education, English language proficiency, and time spent in the United States. Our results document consistent racial/ethnic inequality among immigrants, also evidenced among the U.S. born, revealing that even when accounting for key aspects of U.S. experience, wealth inequality with whites for Latino and black immigrants is strong.