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What Caused the Decline in Immigrant Entry Earnings Following the Immigration and Nationality Act of 1965?

In: Human Capital Investment

Author

Listed:
  • Harriet Duleep

    (William & Mary)

  • Mark C. Regets

    (National Foundation for American Policy)

  • Seth Sanders

    (Cornell University)

  • Phanindra V. Wunnava

    (Middlebury College)

Abstract

Initial earnings of immigrants declined with successive entry cohorts since the Immigration and Nationality Act of 1965. This chapter describes two hypotheses—with opposing predictions about the relationship between immigrant entry earnings and earnings growth. The first suggests the decline reflects a decline in permanent skills as immigration from source countries with high levels of income inequality relative to the United States increased. A second suggests a decline in transferability of country-of-origin skills with no decline in permanent skills. This distinction is important to understand immigrant success. Low permanent skills are difficult to overcome but investment in U.S.-specific skills may facilitate the use of otherwise high permanent skills and lead to rapid earnings growth and success in the United States.

Suggested Citation

  • Harriet Duleep & Mark C. Regets & Seth Sanders & Phanindra V. Wunnava, 2020. "What Caused the Decline in Immigrant Entry Earnings Following the Immigration and Nationality Act of 1965?," Springer Books, in: Human Capital Investment, chapter 0, pages 29-36, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-47083-8_3
    DOI: 10.1007/978-3-030-47083-8_3
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