Endogenous Assimilation and Immigrant Adjustment in Longitudinal Data

37 Pages Posted: 29 Nov 2005

See all articles by Michael Beenstock

Michael Beenstock

Hebrew University of Jerusalem - Department of Economics

Barry R. Chiswick

University of Illinois at Chicago; IZA Institute of Labor Economics

Ari Paltiel

Government of the State of Israel - Jerusalem Offices

Date Written: November 2005

Abstract

We create a longitudinal data set by matching immigrants in Israel's censuses for 1983 and 1995. These panel data reject the Immigrant Assimilation Hypothesis (IAH), which predicts that immigrants with shorter durations in 1983 should have experienced faster earnings growth between 1983 and 1995. By contrast, IAH is corroborated by the synthetic cohort methodology (SCM) over the same period. We suggest that SCM is subject to survivor bias, which increases the apparent degree of assimilation. We show that since the return to destination-specific skills increased during this period because of the very large immigration, the assimilation curve changed its shape in a way that made it difficult to estimate even using panel data.

Keywords: immigrants, assimilation, panel data

JEL Classification: J24, J31, J61, F22

Suggested Citation

Beenstock, Michael and Chiswick, Barry R. and Paltiel, Ari, Endogenous Assimilation and Immigrant Adjustment in Longitudinal Data (November 2005). IZA Discussion Paper No. 1840. Available at SSRN: https://ssrn.com/abstract=857185

Michael Beenstock

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Kfar Etzion 35/4
Jerusalem 91905
Israel
972-2-723-184 (Phone)
972-2-672-5317 (Fax)

Barry R. Chiswick (Contact Author)

University of Illinois at Chicago ( email )

601 S. Morgan Street, Room 2103UH
Chicago, IL 60607-7121
United States
312-996-2683 (Phone)
312-996-3344 (Fax)

IZA Institute of Labor Economics

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

Ari Paltiel

Government of the State of Israel - Jerusalem Offices ( email )

Jerusalem, 91342
Israel

Register to save articles to
your library

Register

Paper statistics

Downloads
86
Abstract Views
1,074
rank
290,229
PlumX Metrics