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How the Earnings Growth of U.S. Immigrants Was Underestimated

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  • Duleep, Harriet
  • Liu, Xingfei
  • Regets, Mark

Abstract

Two radically different descriptions of immigrant earnings trajectories in the U.S. have emerged. One asserts that immigrant men following the 1965 Immigration and Nationality Act have low initial earnings and high earnings growth. Another asserts that post-1965 immigrants have low initial earnings and low earnings growth. We describe the methodological issues that create this divide and show that low earnings growth becomes high earnings growth when immigrants are followed from their initial years in the U.S., earnings growth is allowed to vary with entry earnings, and-when following cohorts instead of individuals-sample restrictions commonly used by labor economists are avoided.

Suggested Citation

  • Duleep, Harriet & Liu, Xingfei & Regets, Mark, 2021. "How the Earnings Growth of U.S. Immigrants Was Underestimated," GLO Discussion Paper Series 820, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:820
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    References listed on IDEAS

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    More about this item

    Keywords

    Sample restrictions; immigrant earning growth; human capital investment; the U.S. census;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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