How Immigrants Fare Across the Earnings Distribution: International Analyses

40 Pages Posted: 12 Nov 2006

See all articles by Barry R. Chiswick

Barry R. Chiswick

University of Illinois at Chicago; IZA Institute of Labor Economics

Anh T. Le

The University of Western Australia - Department of Economics

Paul W. Miller

Curtin University of Technology - School of Economics and Finance; IZA Institute of Labor Economics; Curtin University - Centre for Research in Applied Economics

Date Written: October 2006

Abstract

This paper applies the quantile regression methodology to the study of the determinants of the distribution of earnings among the native born and immigrants in the United States and Australia. The analysis for immigrants is performed separately for those from English-speaking and non-English speaking origins. Using Census data, the quantile regressions permit the measurement of the partial effect of explanatory variables (such as schooling and experience) and the native born-immigrant earnings differential at the different deciles of the earnings distribution. Among other findings, the effects on earnings of schooling and labor market experience are shown to increase at higher deciles. The native-immigrant earnings gap varies by decile, and in particular increases in the U.S. at higher deciles. Minimum wages in the U.S. appear to compress earnings at low deciles, while the Australian minimum (administered) wage system appears to compress earnings across the distribution of earnings.

Keywords: immigrants, earnings distributions, rates of return, quantile regression

JEL Classification: J15, J24, J31, F22

Suggested Citation

Chiswick, Barry R. and Le, Anh T. and Miller, Paul W., How Immigrants Fare Across the Earnings Distribution: International Analyses (October 2006). IZA Discussion Paper No. 2405. Available at SSRN: https://ssrn.com/abstract=944038

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

Anh T. Le

The University of Western Australia - Department of Economics ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia
+61 8 9380 3712 (Phone)

Paul W. Miller

Curtin University of Technology - School of Economics and Finance ( email )

GPO Box U1987
Perth WA 6845
Australia

IZA Institute of Labor Economics

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

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

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