Does the US Labor Market Reward International Experience? | Zendy

Susan Pozo | Zendy

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Does the US Labor Market Reward International Experience?

Author(s) -

Susan Pozo

Publication year - 2014

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.104.5.250

Subject(s) - earnings , economics , human capital , value (mathematics) , creativity , citizenship , international comparisons , international market , labour economics , accounting , economic growth , international trade , political science , psychology , social psychology , machine learning , politics , computer science , law

A typical strategy for measuring the returns to international experience—comparing the earnings of returning migrants to comparable non-migrants—has been criticized for not adequately accounting for self-selection. I suggest an alternative, testing whether individuals born beyond US borders, but into US citizenship, earn more in US labor markets relative to counterparts born on US soil. Those born abroad to US citizens did not self-select an international experience. Using the ACS, I find that the US market rewards international experience, especially in occupations that value creativity and innovation. Women, in particular, are handsomely rewarded for international human capital.

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