On the relative rewards to immigration: a comparison of the relative labour market position of Indians in the USA, the UK and India

Abstract

While most studies of the decision to immigrate focus on absolute income differences between countries, we argue that relative change in purchasing power or status, as captured by an individual's ranking in the wage distribution, may also be another important determinant of the migration decision. Using data on Indian immigrants in the US and the UK matched to comparable data on individuals who remained in India, we show that the average Indian immigrant will experience a fall in their relative ranking in the wage distribution compared to the position similar individuals achieve by remaining in the origin country. The fall in relative rankings is larger for immigrants to the UK than to the US, and largest of all for those with intermediate skills