Working Paper: NBER ID: w1515
Authors: George J. Borjas
Abstract: This paper reexamines the empirical basisfor two "facts" which seem to be found in most cross-section studies of immigrant earnings: (1) the earnings of immigrants grow rapidly as they assimilate into the U.S.; and (2) this rapid growth leads to many immigrants overtaking the earnings of the native-born within 10-15 years after immigration. Using the 1970 and 1980 U.S.Censuses, this paper studies the earnings growth experienced by specific immigrant cohorts during the 1970-1980 period. It is found that within-cohort growth is significantly smaller than the growth predicted by cross-section regressions for most immigrant groups. This differentialis consistent with the hypothesis that there has been a secular decline in the "quality" of immigrants admitted to the United States.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Assimilation (Y60) | Immigrant earnings growth (J69) |
| Cross-section studies (C21) | Overestimation of immigrant earnings growth (J69) |
| Cohort quality decline (L15) | Slower earnings growth for recent immigrant cohorts (J69) |
| Earlier immigrant cohorts (J11) | Higher earnings compared to recent cohorts (J39) |
| Cohort analysis (C41) | Examination of assimilation effects while controlling for cohort quality (C21) |