Interethnic Marriage Decisions: A Choice between Ethnic and Educational Similarities

This paper examines the effect of education on intermarriage and specifically, whether the mechanisms through which education affects intermarriage differ by immigrant generation and race. We consider three main paths through which education affects marriage choice. First, educated people may be better able to adapt to different customs and cultures making them more likely to marry outside of their ethnicity. Second, because the educated are less likely to reside in ethnic enclaves, meeting potential spouses of the same ethnicity may involve higher search costs. Lastly, if spouse-searchers value similarities in education as well as ethnicity, then they may be willing to substitute similarities in education for ethnicity when evaluating spouses. Thus, the effect of education will depend on the availability of same-ethnicity potential spouses with a similar level of education. Using U.S. Census data, we find evidence for all three effects for the population in general. However, assortative matching on education seems to be relatively more important for the native born, for the foreign born that arrived at a fairly young age, and for Asians. We conclude by providing additional pieces of evidence suggestive of our hypotheses.Ethnic intermarriage, Education, Immigration

I'll Marry You If You Get Me a Job: Marital Assimilation and Immigrant Employment Rates

Marriage to a native has a theoretically ambiguous impact on immigrant employment rates. Utilizing 2000 U.S. Census data, this paper empirically tests whether and how marriage choice affects the probability that an immigrant is employed. Results from an ordinary least squares model controlling for the usual measures of human capital and immigrant assimilation suggest that marriage to a native increases an immigrant's employment probability by approximately four percentage points. The estimated impact of marriage to a native increases to 11 percentage points in models which take into account the endogeneity of the intermarriage decision.immigration, employment, intermarriage

Intermarriage and Immigrant Employment: The Role of Networks

The social integration of immigrants is believed to be an important determinant of immigrants' labor market outcomes. Using 2000 U.S. Census data, we examine how and why marriage to a native, one measure of social assimilation, affects immigrant employment rates. We show that even when controlling for a variety of human capital and assimilation measures, marriage to a native increases the probability that an immigrant is employed. An instrumental variables approach which exploits variation in marriage market conditions suggests that the relationship between marriage decisions and employment rates is not likely to arise from positive selection into marrying a native. We then present several pieces of evidence suggesting that networks obtained through marriage play an important part in explaining this effect.Immigration, Marriage, Employment, Networks

Firm-Specific Gender and Ethnicity Pay Differentials in Britain

Using matched employer-employee data we examine firm-specific gender and ethnicity pay differentials in Britain. We estimate an econometric earnings model using the partially-observed pay variable provided in the data and test the normality assumption that underlies the usual interval regression technique. We then estimate alternative specifications allowing for firm-specific random effects, using a semi-parametric finite mixture estimator. The empirical estimation reveals a 22% (13%) weekly (hourly) gender pay gap and a 28% (19%) weekly (hourly) pay race gap. Strikingly, although significant and sizeable the firm-specific effects are not correlated with other variables that may act as indirect indicators of pay differentialsMatched employer-employee data, pay differentials, random effects, semi-parametric finite mixture estimator.

Ethnic Minority Immigrants and their Children in Britain

According to the 2001 UK Census ethnic minority groups account for 4.6 million or 7.9 percent of the total UK population. The 2001 British Labour Force Survey indicates that the descendants of Britain's ethnic minority immigrants form an important part of the British population (2.8 percent) and of the labour force (2.1 percent). In this paper, we use data from the British Labour Force Survey over the period 1979-2005 to investigate educational attainment and economic behaviour of ethnic minority immigrants and their children in Britain. We compare different ethnic minority groups born in Britain to their parent's generation and to equivalent groups of white native born individuals. Intergenerational comparisons suggest that British born ethnic minorities are on average more educated than their parents as well more educated than their white native born peers. Despite their strong educational achievements, we find that ethnic minority immigrants and their British born children exhibit lower employment probabilities than their white native born peers. However, significant differences exist across immigrant/ethnic groups and genders. British born ethnic minorities appear to have slightly higher wages than their white native born peers. But if British born ethnic minorities were to face the white native regional distribution and were attributed white native characteristics, their wages would be considerably lower. The substantial employment gap between British born ethnic minorities and white natives cannot be explained by observable differences. We suggest some possible explanations for these gaps.Ethnic Minorities/Immigrants, Education, Intergenerational comparisons, Employment, Wages

Intermarriage and Immigrant Employment: The Role of Networks

Social networks are commonly understood to play a large role in the labor market success of immigrants. Using 2000 U.S. Census data, this paper examines whether access to native networks, as measured by marriage to a native, increases the probability of immigrant employment. We start by confirming in both least squares and instrumental variables frameworks that marriage to a native indeed increases immigrant employment rates. Next, we show that the returns to marrying a native are not likely to arise solely from citizenship rights acquired through marriage or characteristics of native spouses. We then present several pieces of evidence suggesting that networks obtained through marriage play an important part in explaining the relationship between marriage decisions and employment.Immigration, Marriage, Employment, Networks

Ethnic minority immigrants and their children in Britain

This paper investigates educational attainment and economic behaviour of ethnic minority immigrants and their children in Britain. Despite their strong educational achievements, ethnic minority immigrants and their descendants exhibit lower employment probabilities than their white native born peers. Although unconditional wages of British born ethnic minorities appear to be slightly higher than those of their white native born peers, their wages would be considerably lower if they had the same characteristics and regional allocation. Differences in wage offer distributions hardly account for the employment differences of British born ethnic minorities. Further, British born ethnic minorities have lower employment propensities for the same wages than native born whites. We examine possible explanations for these gaps.Ethnic Minorities/Immigrants, Education, Employment, Wages

I'll Marry You If You Get Me a Job: Cross-Nativity Marriages and Immigrant Employment Rates

This paper tests whether marriage to a native affects the probability that an immigrant is employed. We provide a theoretical background which explains how marriage to a native may positively or negatively affect an immigrant's employment probability. Utilizing the 2000 U.S. Census, we first look at the effect of cross-nativity marriages on employment using a linear probability model. Then, we estimate a two stage least squares model instrumenting for cross-nativity marriages using local marriage market conditions. Results from a linear probability model controlling for the usual measures of human capital and immigrant assimilation suggest that marriage to a native increases the employment probability of an immigrant by approximately 5 percentage points. When controlling for the endogeneity of the intermarriage decision, marriage to a native increases the employment probability by about 11 percentage points. We provide alternative explanations and suggest policy implications.Intermarriage, Employment, Immigration

Tenure, Wage Profiles and Monitoring

We investigate the relationship between the slope of the wage-tenure profile and the level of monitoring across two cross sections of matched employer-employee British data. Our theoretical model predicts that increased monitoring leads to a decline in the slope of the wage-tenure profile. Our empirical analysis provides strong support for this prediction.monitoring, tenure, efficiency wages

Tenure, Wage Profiles and Monitoring

Efficiency wage theory predicts that firms can induce worker effort by the carrot of high wages and / or the stick of monitoring worker performance. Another option available to firms is to tilt the remuneration package over time such that the lure of high future earnings acts as a deterrent to current shirking. In this paper we undertake the first empirical investigation of this relationship between the slope of the wage-tenure profile and the level of monitoring. On the assumption that firms strive for the optimal trade-off between these various instruments, we hypothesise that increased monitoring leads to a decline in the slope of the wage-tenure profile. Our empirical analysis, using two cross sections of matched employer-employee British data, provides robust support for this prediction.Monitoring, Tenure, Efficiency, Wages.