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An Analysis of Earnings Differentials between College-Educated Chinese Immigrants and US Natives: Who Has the Advantage?

Author

Listed:
  • Lu Liao

    (Illinois Wesleyan University)

  • Michael Seeborg

    (Illinois Wesleyan University)

Abstract

This paper uses 2012 American Community Survey (ACS) data to examine the relative earnings performance of full-time employed college-educated Chinese immigrants compared to full-time employed college-educated natives. The college-educated Chinese immigrant population has nearly a $7,000 unadjusted earnings advantage over natives. We show that this advantage is primarily due to differences in human capital endowments between the two groups. For example, college-educated Chinese immigrants are more likely to have PhD degrees and to choose majors that lead to higher paying occupations than college-educated natives. When we control for human capital and demographic differences, the Chinese immigrant earnings advantage becomes a small disadvantage. We also find that Chinese that came as youth, and have been in the U.S. for many years, have a significant earnings advantage over other Chinese immigrants.

Suggested Citation

  • Lu Liao & Michael Seeborg, 2015. "An Analysis of Earnings Differentials between College-Educated Chinese Immigrants and US Natives: Who Has the Advantage?," Journal of Economic Insight, Missouri Valley Economic Association, vol. 41(2), pages 1-18.
    • Handle: RePEc:mve:journl:v:41:y:2015:i:2:p:1-18
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    Cited by:

    1. Michael Seeborg & Ene Ikpebe, 2021. "The Effect of Undergraduate Major Choices on the Earnings of Sub-Saharan African Immigrant and Native-Born College Graduates," The American Economist, Sage Publications, vol. 66(2), pages 222-240, October.
    2. Ene Ikpebe & Michael C. Seeborg, 2018. "Earnings Performance of African Immigrants: Evidence from the American Community Survey," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(2), pages 215-230, June.

    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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