Full Citation

Title: The Wage Premium of Naturalized Citizenship

Citation Type: Book, Section

Publication Year: 2016

ISBN: 978-1-78560-787-5;978-1-78560-786-8

ISSN:

DOI: 10.1108/S0731-905320160000036018

NSFID:

PMCID:

PMID:

Abstract: We examine the potential effect of naturalization on the U.S. immigrants’ earnings. We find the earning gap between naturalized citizens and noncitizens is positive over many years, with a tent shape across the wage distribution. We focus on a normalized metric entropy measure of the gap between distributions, and compare with conventional measures at the mean, median, and other quantiles. In addition, naturalized citizen earnings (at least) second-order stochastically dominate noncitizen earnings in many of the recent years. We construct two counterfactual distributions to further examine the potential sources of the earning gap, the “wage structure” effect and the “composition” effect. Both of these sources contribute to the gap, but the composition effect, while diminishing somewhat after 2005, accounts for about 3/4 of the gap. The unconditional quantile regression (based on the Recentered Influence Function), and conditional quantile regressions confirm that naturalized citizens have generally higher wages, although the gap varies for different income groups, and has a tent shape in many years.

Url: http://www.emeraldinsight.com/doi/10.1108/S0731-905320160000036018

User Submitted?: No

Authors: Maasoumi, Esfandiar; Zhu, Yifeng

Editors: GonzAlez-Rivera, Gloria; Hill, R. Carter; Lee, Tae-Hwy

Pages: 315-348

Volume Title: Essays in Honor of Aman Ullah

Publisher: Emerald Group Publishing

Publisher Location: Bingley, West Yorkshire, England

Volume:

Edition:

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Migration and Immigration, Other

Countries: