Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias

Heterogeneity in the ethnic composition of Germany's immigrant population renders general conclusions on the degree of economic integration difficult. Using a rich longitudinal data-set, this paper tests for differences in economic assimilation profiles of four entry cohorts of foreign-born immigrants and ethnic Germans. The importance of time-invariant individual unobserved heterogeneity and panel attrition in determining the speed of assimilation is analysed. We find evidence for heterogeneity in the assimilation profiles and for robust assimilation profiles for two entry cohorts only. Omitted variables, systematic sample attrition and the presence of second generation immigrants in the sample influence the speed of assimilation, but do not change the overall picture

Migration, Ethnicity and Economic Integration

This chapter deals with the economic and ethnic diversity caused by international labor migration, and their economic integration possibilities. It brings together three strands of literature dealing with the neoclassical economic assimilation, ethnic identities and attitudes towards immigrants and the natives, and provides an analysis in understanding their interactions. The issue of how immigrants fare in the host country especially in terms of their labor force participation and remuneration has been the core of research in the labor migration literature. If immigrants fare as well as the natives, then they are economically assimilated. While some immigrant groups do, most do not, especially in Europe. Of equal importance is how immigrants identify with the culture of their home and receiving countries, and if natives and immigrants have the right attitudes about each other. Ethnic identities and attitudes seem to be less affected by the economic environment but have implications for economic performance

English Language Proficiency and the Earnings of Young Immigrants in U.S. Labor Markets

This paper studies the English language proficiency levels of immigrants to the United States as determined from scores on a standardized test explicitly designed to measure reading proficiency. The data are disaggregated by area of origin and year of immigration. The connection between English deficiency levels and wages is then examined. In contrast to previous studies, it is found that English deficiency unambiguously depresses the wages of immigrants below what their other human capital characteristics suggest they should earn in the U.S. labor market. At the same time, the data show that, among the sample of young adults examined, there is a remarkable correlation between learning of English and time lived in the United States. The study indicates that policies encouraging the acquisition of English as a second language may provide a high dividend in the form of economic progress among immigrants. Copyright 1992 by The Policy Studies Organization.

Immigrants' Relative Earnings in Sweden - A Cohort Analysis

This paper examines the earnings assimilation of immigrants in Sweden by applying a quantile regression approach on pooled data during the period 1990-99. Immigrants from Nordic and Western European countries have a smaller entry earnings disadvantage and slower rate of assimilation than other groups of immigrants. For some cohorts of immigrants from European countries the initial earnings disadvantage disappears after 15-20 years in Sweden, but as non-European immigrants suffered from very large entry earnings disadvantages, their earnings will not catch up with the earnings of natives during their first 20 years in Sweden. More recent non-European immigrant cohorts had a larger entry earnings disadvantage than previous ones. The immigration policy, discrimination, and the economic conditions may have contributed to the decline in the earnings assimilation of non-European immigrants. Copyright 2006 The Authors; Journal compilation 2006 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

Immigrants and the Use of Government Transfer Payments

This article examines the use of government benefits and allowances by Australian immigrants relative to their native-born counterparts. The study extends the Australian literature by employing micro-level (Australian Longitudinal Survey) data, controlling for a number of relevant variables including first or second generation immigrant status and the nature of transfer payments received. The data on young adults employed in the study provide a comparable population for examining the relative use of benefits among those of similar age, allowing comparisons based on only the relevant types of benefits. The results consistently reject the hypothesis that immigrants are disproportionately using benefit payments and thereby imposing a burden on public funds. These results are of interest, especially since Australia is already a major immigrant-receiving country, and since the Australian welfare system is more extensive in its coverage than most other immigrant-receiving countries. Copyright 1993 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.