Assimilation Via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States

48 Pages Posted: 14 Jul 2003

See all articles by Heather Antecol

Heather Antecol

Claremont McKenna College - Robert Day School of Economics and Finance; IZA Institute of Labor Economics

Peter Kuhn

University of California, Santa Barbara (UCSB) - Department of Economics; IZA Institute of Labor Economics; National Bureau of Economic Research (NBER)

Stephen J. Trejo

University of Texas at Austin - Department of Economics; IZA Institute of Labor Economics

Date Written: June 2003

Abstract

How do international differences in labor market institutions affect the nature of immigrant earnings assimilation? Using 1980/81 and 1990/91 cross-sections of census data from Australia, Canada, and the United States, we estimate the separate effects of arrival cohort and duration of destination-country residence on immigrant outcomes in each country. Relatively inflexible wages and generous unemployment insurance in Australia suggest that immigrants there might improve themselves primarily through employment gains rather than wage growth, and we find empirically that employment gains explain all of the labor market progress experienced by Australian immigrants. Wages are less rigid in Canada and the United States than in Australia, with the general consensus that the U.S. labor market is the most flexible of the three. We find that wage assimilation is an important source of immigrant earnings growth in both Canada and the United States, but the magnitude of wage assimilation is substantially larger in the United States. These same general patterns remain when we replicate our analyses for two subsamples of immigrants - Europeans and Asians - that are more homogeneous in national origins yet still provide sufficiently large sample sizes for each country.

Keywords: Immigrant Assimilation, Labor Market Flexibility

JEL Classification: J38, J64

Suggested Citation

Antecol, Heather and Kuhn, Peter J. and Trejo, Stephen J., Assimilation Via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States (June 2003). Available at SSRN: https://ssrn.com/abstract=422522

Heather Antecol

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth Street
Claremont, CA 91711
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Peter J. Kuhn

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

North Hall 3036
Santa Barbara, CA 93106
United States
(805) 893-3666 (Phone)
(805) 893-8830 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Stephen J. Trejo (Contact Author)

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States
512-475-8512 (Phone)
512-471-3510 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
83
Abstract Views
1,177
rank
327,962
PlumX Metrics