The Effects of Intermarriage on the Earnings of Female Immigrants in the United States

Abstract

This paper investigates the effects of intermarriage on the earnings of female immigrants in the United States. The main empirical question asked is whether immigrant females married to US-born spouses have higher earnings than those of immigrant females married to other immigrants. Using 1970 and 1870 samples of IPUMS data, I estimate an earnings equation through OLS. I also correct for the labor force selection bias using the Heckman procedure. I finally take into account the endogeneity of intermarriage and apply a twostage least squares (2SLS) estimation procedure. I find that there is a positive marriage premium among immigrant females in the United States but a negative intermarriage premium for exogamously married females compared to endogamously married females. My results show that the longer the immigrant stays in the host country, the higher her wages, which is evidence for the assimilation effect over time. I find some evidence for a negative labor force selection bias among immigrant females. In other words, higher human capital women may select themselves out of the labor force, while lower human capital women are working for wages. Among those who are in the labor force, however, married females earn more than singles. I also conclude that being an immigrant from an English-speaking country does not have any impact on wages. Both premiums become statistically insignificant in difference from zero when 2SLS is used as an estimation procedure