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Equal Convergence? Convergence Patterns Among Immigrants by Occupation

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  • Gwyneth Donahue

    (Idaho State University)

Abstract

This study examines the immigrant-native wage gap in the United States using 2019 Annual Social and Economic Supplement data from the Current Population Survey. Ordinary least squares regression analyses were used to estimate the wages of immigrants while controlling for human capital characteristics, sociodemographic factors, and time since arrival in the United States. The results demonstrate that the wage gap converges with more time spent in the United States, likely due to increased work experience and language proficiency, but does not completely diminish. Separate regressions are conducted for different occupational groups. Occupations are shown to be a large contributor to the differential, as wages differ significantly more in unskilled occupations such as manual labor or transportation. The possibility of labor market discrimination is explored as a reason for the wage gap, with the Blinder-Oaxaca decomposition showing that only 68% of the wage gap can be explained by the included explanatory variables.

Suggested Citation

  • Gwyneth Donahue, 2021. "Equal Convergence? Convergence Patterns Among Immigrants by Occupation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 49(3), pages 293-304, September.
    • Handle: RePEc:kap:atlecj:v:49:y:2021:i:3:d:10.1007_s11293-021-09728-z
    DOI: 10.1007/s11293-021-09728-z
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    References listed on IDEAS

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    1. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
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    3. James P. Smith, 2006. "Immigrants and the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 203-234, April.
    4. Robert J. R. Elliott & Joanne K. Lindley, 2008. "Immigrant wage differentials, ethnicity and occupational segregation," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 645-671, June.
    5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    6. Peter S. Li, 2001. "The Market Worth of Immigrants' Educational Credentials," Canadian Public Policy, University of Toronto Press, vol. 27(1), pages 23-38, March.
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    More about this item

    Keywords

    J24; J31; J71;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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