The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings | Zendy

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The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings

Author(s) -

Darren Lubotsky

Publication year - 2010

Publication title -

the review of economics and statistics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.999

H-Index - 165

eISSN - 1530-9142

pISSN - 0034-6535

DOI - 10.1162/rest_a_00094

Subject(s) - earnings , immigration , pessimism , economics , wage , demographic economics , social security , labour economics , survey of income and program participation , geography , market economy , philosophy , accounting , archaeology , epistemology

Since recent immigrants tend to earn less than natives, their relative earnings have been adversely affected by an increase in the return to labor market skills over the past three decades. Using longitudinal Social Security records matched to cross-sections of the SIPP and CPS, I estimate the return to skills rose by 41% between 1980 and 1997. This reduced the relative earnings of immigrants who arrived in the 1980s and early 1990s by 10 to 15 percentage points. Examining solely the earnings of recent immigrants may lead to an overly pessimistic picture of their actual labor market skills. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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