Hebrew language usage: determinants and effects on earnings among immigrants in Israel

This paper uses the 1983 Census of Israel to analyze Hebrew speaking skills and the effects of Hebrew fluency on the earnings of adult male immigrants. Hebrew fluency increases with a longer duration in Israel, the presence of children in the household, marrying after immigration, living in an area in which a smaller proportion speak one‘s mother tongue, a younger age at migration, a higher level of schooling and varies by country of birth. Earnings increase monotonically with the use of Hebrew. Speaking English as a second language is associated with higher earnings, even when country of origin is held constant. Received: 9 June 1997/Accepted: 6 November 1997     

Language skills and earnings among legalized aliens

This paper uses the data on males and females from the 1989 Legalized Population Survey (LPS), a sample of aliens granted amnesty under 1986 Immigration Reform and Control Act, to analyse English language proficiency and earnings. We use a model of English language proficiency that is based on economic incentives, exposure and efficiency variables that measure the costs and benefits of aquiring English language skills. Consistent with the model, in this sample of former illegal aliens, English language proficiency is greater for those with more schooling, who immigrated at a younger age, who have been in the United States longer, with a more continous stay, and who have less access to other origin language speakers where they live. Earnings are higher by about 8% for men and 17% for women who are proficient in both speaking and reading English, compared to those lacking both skills. Received: 13 February 1998/Accepted: 9 July 1998     

The English language fluency and occupational success of ethnic minority immigrant men living in English metropolitan areas

This paper examines two crucial aspects of the assimilation experience of ethnic minority immigrants in the United Kingdom. It explores the determinants of their English language (speaking) fluency and the key role such skills play in their occupational success. Our sample is derived from the Fourth National Survey of Ethnic Minorities undertaken in 1994. Uniquely this data contains an interviewer-assessed measure of English language fluency. Importantly, we also attempt to control for possible endogeneity bias in the estimates of the effect of language fluency on occupational success. We find that fluency is associated with significantly higher mean hourly occupational wages. Received: 26 November 1999/Accepted: 03 August 2000     

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     

The performance of immigrants in the Norwegian labor market

This paper tests the assimilation hypothesis with Norwegian data. Using both cross-section and cohort analyses, the results show that the 1970–1979 immigrant cohort experienced an earnings growth of about 11% between 1980 and 1990, when their earnings profile was compared to that of natives. This is lower than the 19% assimilation rate predicted by the cross-section method. On the contrary, the results reveal a rapid earnings divergence across cohorts, and between the 1960–1969 cohort and natives. It is also shown that the „quality” of successive immigrant waves has declined over time, thus biasing the cross-section estimates of assimilation. Received: 8 August 1995 / Accepted: 7 January 1997     

On private incentives to acquire household production skills

In non-cooperative family models, being good at contributing to family public goods like household production may reduce one's utility, since it tends to crowd out contributions from one's spouse. Similar effects also arise in cooperative models with non-cooperative threat point: improved contribution productivity entails loss of bargaining power. This strategic effect must be traded against the benefits of household production skills, in terms of increased consumption possibilities. Since cooperation involves extensive specialization, incentives to acquire household production skills are strikingly asymmetric, with the one not specializing in household production having strong disincentives for household skill acquisition. Received: 06 July 1999/Accepted: 08 June 2000     

Effect of childbearing on Filipino women's work hours and earnings

The effects of childbearing and work sector on women's hours and earnings in the 8 years following an index pregnancy were examined in a cohort of more than 2,000 women in the Cebu Longitudinal Health and Nutrition Survey. Change in cash earnings and hours worked were each modeled jointly with sector of labor force participation using an estimation strategy that deals with endogeneity of childbearing decisions and selectivity into sector of work. Two or more additional children born in the 8 year interval significantly reduced women's earnings, while having an additional child under 2 years of age in 1991 reduced hours worked. Received: 16 July 1998/Accepted: 22 March 2001 All correspondence to Linda Adair. The authors wish to thank Family Health International and the U.S. Agency for International Development (USAID) for their generous support. This publication was funded by USAID under Cooperative Agreement USAID/CCP-3060-A-00-3021-00 to Family Health International (FHI). David Guilkey's participation in this paper was also supported by the MEASURE Evaluation Project also with support from the United States Agency for International Development (USAID) under Contract Number HRN-A-00-97-00018-00. The conclusions expressed in this report do not necessarily reflect the policies of FHI or USAID. Helpful comments by two anonymous referees are gratefully acknowledged. Responsible editor: T. Paul Schultz.     

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     

Should I stay or should I go? Educational choices and earnings: An empirical study for Portugal

We analyse educational choices and earnings of individuals at two different levels in the Portuguese educational system. At each exit we consider two decisions: the decision to continue studying and the employment decision. We find empirical support for the existence of selectivity bias as the errors of the earnings functions are in general correlated with the disturbances of the decision functions. The obtained rates of return to education vary between 2.4 and 9.4 percent, depending on whether or not selectivity and quantity effects are excluded from the computations. Note that selectivity represents three quarters of this difference. Received: 5 March 2001/Accepted: 10 October 2001 I am grateful for the comments of the editor and two anonymous referees. Responsible editor: John F. Ermisch.     

Family matters: the role of the family in immigrants' destination language acquisition

Studies of immigrants' destination language acquisition to date have focused on the individual. In contrast, this paper is concerned with the relationships among family members in the determinants of destination language proficiency among immigrants. A model of immigrant language proficiency is augmented to include dynamics among family members. It is tested using data on a sample of recent immigrants. Children are shown to have a negative effect on their mother's language proficiency, but no effect on their father's. There is a substantial positive correlation between the language skills of spouses. This is due to the correlation between spouses in both the measured and the unmeasured determinants of destination language skills, even when country of origin fixed effects are held constant.

Educational Homogamy and Gender-Specific Earnings: Sweden, 1990–2009

Several studies have shown strong educational homogamy in most Western societies, although the trends over time differ across countries. In this article, we study the connection between educational assortative mating and gender-specific earnings in a sample containing the entire Swedish population born 1960–1974; we follow this sample from 1990 to 2009. Our empirical strategy exploits a longitudinal design, using distributed fixed-effects models capturing the impact of partner education on postmarital earnings, relating it to the income development before union formation. We find that being partnered with someone with more education (hypergamy) is associated with higher earnings, while partnering someone with less education (hypogamy) is associated with lower earnings. However, most of these differences in earnings emerge prior to the time of marriage, implying that the effect is explained by marital selection processes rather than by partner education affecting earnings. The exception is hypogamy among the highly educated, for which there are strong indications that in comparison with homogamy and hypergamy, earnings grow slower after union formation.     

U.S. Immigrants’ labor market adjustment: Additional Human capital investment and Earnings Growth

New Immigrant Survey-Pilot data are used to address the long-standing debate over whether immigrants to the United States assimilate economically. Using panel data and an individual fixed-effect specification, I find evidence indicating rapid economic assimilation, on the order of an average increase in earnings of 12%-13% during the 12-month survey period. Results indicate partial support for Duleep and Regets' Immigrant Human Capital Investment (IHCI) model, indicating an inverse relationship between initial earnings and earnings growth and showing some evidence of the expected interaction between skill transferability and skill level when predicting human capital investment decisions. Having more years of education, English proficiency, and lower earnings at the baseline are associated with a higher probability of enrolling informal school in the United States. Overall, findings suggest substantial economic integration within the first year after establishing permanent residency.     

Income and employment effects of health shocks A test case for the German welfare state

Using data from the first eleven waves of the German Socio-Economic Panel this study investigates the dynamic effects of health shocks on employment and economic well-being of older workers. A health shock trebles the probability of leaving the labor force and almost doubles the unemployment risk. The financial effects of health shocks are small on average and those individuals with the highest remaining earnings potential are least affected by the health shock. Welfare state instruments support the poorest section of the population but do not succeed in neutralizing the effects of a health shock for these groups. Received: 9 April 1997/Accepted: 28 May 1998     

Returns to returning

We examine the labor market performance of return migrants using the Hungarian Household Panel Survey. Two distinct selection issues are considered in the estimation of the earnings equation; we implement a natural method using MLE. The result that there is a “premium” to work experience abroad for women is robust across the models we considered. For men, the return to working abroad is not generally significant. Received: 4 June 1998/Accepted: 16 April 1999     

Earnings assimilation of immigrants in Norway – A reappraisal

The relative earnings growth for immigrants in Norway is computed. Unlike Hayfron (1998, this journal) we define immigrants by country of origin rather than citizenship and perform separate studies of immigrants from inside and outside the OECD region. Replicating Hayfron op.cit. we find that the earnings assimilation is considerably weaker. Further, we find that the earnings of OECD immigrants are comparable to those of natives, while Non-OECD immigrants earn considerably less than natives at the time of entry, but that their relative earnings improve gradually over time. Earnings of different immigrant cohorts converged from 1980 to 1990, indicating a non-linear rate of assimilation. Received: 7 April 2000/Accepted: 4 January 2001     

A note on the rate of intergenerational convergence of earnings

We show that “convergence” to mean earnings in intergenerational earnings mobility models will be a function not only of the single-generation correlation of earnings, but also of the properties of the unobserved stochastic distribution of shocks to earnings. Received: 24 March 1998/Accepted: 13 November 1998     

Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets

This paper analyses the effects of expected earnings and local markets conditions on the behaviour of young adults with high school diplomas. Decisions to either remain in the parental home or form a new household are modelled jointly with those of either gaining work experience or investing in a university education. Expected lifetime earnings are found to play a crucial role in determining the choice of studying and residing with parents. Poor labour market opportunities discourage young people from working and induce them to study. The cost of housing greatly influences the choice of working and leaving the parental home. Received: 23 March 2001/Accepted: 26 November 2001 All correspondence to Gianna Claudia Giannelli. Helpful comments by two anonymous referees are gratefully acknowledged. Responsible editor: John F. Ermisch.     

The cost of children: May the collective approach to household behavior help?

The collective approach to household consumption behavior tries to infer from variables supposed to affect the general bargaining position of household members information on the allocation of consumptions goods and tasks among them. This paper investigates the extension of previous work to the case where children may be considered as a public consumption good by the two adult members of a household. The main question being asked is whether it is possible to retrieve from the aggregate consumption behaviour of the household and the relative earnings of the parents information on the allocation of goods between them and children. This alternative approach to the estimation of the ‘cost of children’ is contrasted with the conventional approach based on a ‘unitary’ representation of and demographic separability assumptions on household consumption behaviour. Received: 29 August 1997/Accepted: 26 November 1998     

Continuous training in Germany

Using data from the German Socio Economic Panel, I analyze the incidence, financing, and returns to workplace training in Germany for the years 1986 to 1989. Much of this training seems general, and is provided to workers by their employer at no direct cost. While workers typically report larger productivty gains from the training during work hours, such training has lower returns than training undertaken during leisure time. Workers with higher earnings growth seem more likely to participate in training. I deal with this selection problem by estimating models that allow for inidividual level heterogeneity in earnings growth rates. Received: 24 November 1997/Accepted: 27 March 2000     

Economic Assimilation and Skill Acquisition: Evidence From the Occupational Sorting of Childhood Immigrants

We study the economic assimilation of childhood immigrants to the United States. The linguistic distance between English and the predominant language in one’s country of birth interacted with age at arrival is shown to be closely connected to occupational sorting in adulthood. By applying big-data techniques to occupations’ detailed skill requirements, we provide evidence that childhood immigrants from English-distant countries who arrived after the primary school years reveal comparative advantages in tasks distinct from those for which (close to) Anglophone immigrants are better suited. Meanwhile, those who arrive at younger ages specialize in a bundle of skills very similar to that supplied by observationally equivalent workers. These patterns emerge even after we net out the effects of formal education. Such findings are compatible with the existence of different degrees of complementarity between relative English-learning potential at arrival and the acquisition of multiple capabilities demanded in the U.S. labor market (math/logic, socioemotional, physical, and communication skills). Consistent with the investment-complementarity argument, we show that linguistic distance and age at arrival also play a significant role on the choice of college major within this population.