Full Citation
Title: The Effects of Larger Inflows on Immigrants: Wage Gap Profiles of a New Group of Asian Immigrants
Citation Type: Miscellaneous
Publication Year: 2014
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Abstract: Wage-gap profiles of a rapidly growing group of new Asian immigrants from countries that were underrepresented in USA until 1965 are studied. Entry-level wages and assimilation rates fall across cohorts. However the wage gap versus natives widens for all new Asian cohorts after the second decade of stay, which is not seen for other immigrant groups. If occupations are imperfect substitutes, and natives and immigrants are worse substitutes than entrant and established immigrants within occupations, then the comparatively larger increases in new Asian inflows exert a more negative impact on their wages, compared to other groups. The explanation is studied in a nested CES framework. Elasticity parameters are estimated using cross-metropolitan variations in occupational and immigrant labor supply. Local labor supply is instrumented by using predicted inflows of entrants into a metropolitan and occupation, inferred from the location and occupational distribution of previous own-country immigrants. Finally, model estimates from 1990 are used to predict the occupational native-immigrant wage gap in 2000 attributable to competition from rising supplies of substitute labor. The predicted gap is larger than the real gap, since the U.S. followed a preferential policy towards high-skill labor in the 1990s.
Url: http://irving.vassar.edu/faculty/sb/WebsiteAsianImmigrants.pdf
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Authors: Basu, Sukanya
Publisher: Vassar College
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Migration and Immigration
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