IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v61y2020i2p941-972.html
   My bibliography  Save this article

Immigrant Wage Growth In The United States: The Role Of Occupational Upgrading

Author

Listed:
  • Rebecca Lessem
  • Carl Sanders

Abstract

Immigrants to the United States routinely take jobs below their skill qualifications because of barriers to entering occupations. We use a structural model of immigrant job choice to quantify the benefits of potential policies to promote entry into suitable occupations. We estimate the model using longitudinal labor market data on immigrants to the United States. Our counterfactual results show that eliminating barriers to occupational entry would lead to only a small earnings increase for the average immigrant in our sample, but a substantial earnings increase for the most highly skilled immigrants.

Suggested Citation

  • Rebecca Lessem & Carl Sanders, 2020. "Immigrant Wage Growth In The United States: The Role Of Occupational Upgrading," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 941-972, May.
    • Handle: RePEc:wly:iecrev:v:61:y:2020:i:2:p:941-972
    DOI: 10.1111/iere.12445
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/iere.12445
    Download Restriction: no
    File URL: https://libkey.io/10.1111/iere.12445?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert J. LaLonde & Robert H. Topel, 1992. "The Assimilation of Immigrants in the U. S. Labor Market," NBER Chapters, in: Immigration and the Work Force: Economic Consequences for the United States and Source Areas, pages 67-92, National Bureau of Economic Research, Inc.
    2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    3. Joan Llull, 2018. "Immigration, Wages, and Education: A Labour Market Equilibrium Structural Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(3), pages 1852-1896.
    4. Berman, Eli & Lang, Kevin & Siniver, Erez, 2003. "Language-skill complementarity: returns to immigrant language acquisition," Labour Economics, Elsevier, vol. 10(3), pages 265-290, June.
    5. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall.
    6. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    7. David Autor & David Dorn, 2009. "This Job Is "Getting Old": Measuring Changes in Job Opportunities Using Occupational Age Structure," American Economic Review, American Economic Association, vol. 99(2), pages 45-51, May.
    8. Susumu Imai & Derek Stacey & Casey Warman, 2019. "From engineer to taxi driver? Language proficiency and the occupational skills of immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 914-953, August.
    9. Borjas, George J. & Freeman, Richard B. (ed.), 1992. "Immigration and the Work Force," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066332, April.
    10. George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," Working Papers 2009-13, Brown University, Department of Economics.
    11. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    13. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    14. Milton Friedman & Simon Kuznets, 1954. "The Data on Income from Independent Professional Practice," NBER Chapters, in: Income from Independent Professional Practice, pages 46-62, National Bureau of Economic Research, Inc.
    15. Darren Lubotsky, 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 820-867, October.
    16. Ana Damas de Matos, 2012. "The Careers of Immigrants," CEP Discussion Papers dp1171, Centre for Economic Performance, LSE.
    17. Harriet Duleep & Daniel Dowhan, 2002. "Insights from longitudinal data on the earnings growth of U.S. foreign-born men," Demography, Springer;Population Association of America (PAA), vol. 39(3), pages 485-506, August.
    18. James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part I: Causal Models, Structural Models and Econometric Policy Evaluation," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 70, Elsevier.
    19. Evans, Michael & Swartz, Timothy, 2000. "Approximating Integrals via Monte Carlo and Deterministic Methods," OUP Catalogue, Oxford University Press, number 9780198502784.
    20. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
    21. Ilana Redstone Akresh, 2008. "Occupational Trajectories of Legal US Immigrants: Downgrading and Recovery," Population and Development Review, The Population Council, Inc., vol. 34(3), pages 435-456, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massimiliano Tani, 2021. "Occupational Licensing and the Skills Mismatch of Highly Educated Migrants," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 730-756, September.
    2. Jérôme Adda & Christian Dustmann & Joseph-Simon Görlach, 2022. "The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 2841-2871.
    3. Ales, Laurence, 2020. "Comments on “What is the Optimal Immigration Policy? Migration, Jobs and Welfare” by Guerreiro, Rebelo, and Teles," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 88-91.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    2. George J. Borjas, 2021. "The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 3, pages 31-65, World Scientific Publishing Co. Pte. Ltd..
    3. Carl Sanders & Rebecca Lessem, 2013. "The Native-Immigrant Wage Gap in the United States," 2013 Meeting Papers 1206, Society for Economic Dynamics.
    4. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," RF Berlin - CReAM Discussion Paper Series 1402, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Blau, Francine D. & Kahn, Lawrence M., 2011. "Substitution Between Individual and Cultural Capital: Pre-Migration Labor Supply, Culture and US Labor Market Outcomes Among Immigrant Woman," IZA Discussion Papers 5890, Institute of Labor Economics (IZA).
    6. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    7. Merja Kauhanen & Mari Kangasniemi, 2012. "Who leaves and who stays? Outmigration of Estonian immigrants from Finland and its impact on economic assimilation of Estonian immigrants in Finland," Working Papers 282, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    8. Francine D. Blau & Lawrence M. Kahn, 2015. "Substitution between Individual and Source Country Characteristics: Social Capital, Culture, and US Labor Market Outcomes among Immigrant Women," Journal of Human Capital, University of Chicago Press, vol. 9(4), pages 439-482.
    9. Neagu, Ileana Cristina, 2009. "Career placement of skilled migrants in the U.S. labor market : a dynamic approach," Policy Research Working Paper Series 4891, The World Bank.
    10. Mattoo, Aaditya & Neagu, Ileana Cristina & Özden, Çağlar, 2012. "Performance of skilled migrants in the U.S.: A dynamic approach," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 829-843.
    11. Dustmann, Christian & Görlach, Joseph-Simon, 2016. "Estimating immigrant earnings profiles when migrations are temporary," Labour Economics, Elsevier, vol. 41(C), pages 1-8.
    12. Darren Lubotsky, 2001. "The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings," Working Papers 837, Princeton University, Department of Economics, Industrial Relations Section..
    13. Seik Kim, "undated". "Economic Assimilation of Foreign-Born Workers in the United States: An Overlapping Rotating Panel Analysis," Working Papers UWEC-2008-19, University of Washington, Department of Economics.
    14. Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, vol. 19(2), pages 241-259.
    15. Brian Duncan & Stephen J. Trejo, 2015. "Assessing the Socioeconomic Mobility and Integration of U.S. Immigrants and Their Descendants," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 108-135, January.
    16. Stephen J. Trejo, 2003. "Intergenerational Progress of Mexican-Origin Workers in the U.S. Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    17. Fernandez-Zubieta, Ana & Geuna, Aldo & Lawson, Cornelia, 2015. "What do We Know of the Mobility of Research Scientists and of its Impact on Scientific Production," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201522, University of Turin.
    18. Lemos, Sara, 2017. "Mind the gap: A detailed picture of the immigrant-native earnings gap in the UK using longitudinal data between 1978 and 2006," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 57-75.
    19. Darren Lubotsky, 2011. "The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 59-71, February.
    20. Abdulla, Kanat, 2020. "Human capital accumulation: Evidence from immigrants in low-income countries," Journal of Comparative Economics, Elsevier, vol. 48(4), pages 951-973.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:iecrev:v:61:y:2020:i:2:p:941-972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.