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Related Experiment Videos

Social Security and immigrant earnings

H O Duleep1, M C Regets

  • 1Division of Economic Research, Social Security Administration, Washington, DC 20008, USA.

Social Security Bulletin
|January 1, 1996
PubMed
Summary
This summary is machine-generated.

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Recent immigrant men show slower initial earnings but faster growth compared to U.S.-born men. This faster earnings growth compensates for lower entry wages, impacting Social Security projections.

Area of Science:

  • Economics
  • Sociology
  • Demography

Background:

  • Immigrant contributions to social insurance systems are influenced by earnings trajectories.
  • Understanding cohort-specific earnings patterns is crucial for accurate fiscal projections.
  • Previous research indicates variability in immigrant economic assimilation over time.

Purpose of the Study:

  • To analyze the earnings growth of immigrant men across different arrival cohorts.
  • To assess the long-term economic assimilation of immigrants compared to native-born populations.
  • To inform projections of immigrant contributions to the Social Security system.

Main Methods:

  • Utilized data from the 1970, 1980, and 1990 U.S. decennial censuses.
  • Compared earnings growth rates between immigrant and U.S.-born men.

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  • Analyzed trends in initial earnings and subsequent earnings growth for immigrant cohorts.
  • Main Results:

    • Immigrant men exhibit faster earnings growth than U.S.-born men.
    • A significant decline in initial earnings for recent immigrant cohorts was observed.
    • There has been a substantial increase in immigrant earnings growth rates over time.

    Conclusions:

    • Despite lower entry wages, recent immigrants experience robust earnings growth.
    • Faster immigrant earnings growth partially offsets initial wage disadvantages.
    • Findings have implications for Social Security solvency and immigration policy.