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Measuring immigrant wage growth using matched CPS files

H O Duleep, M C Regets

    Demography
    |May 1, 1997
    PubMed
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    Immigrant men experience faster wage growth than native-born men, even when accounting for initial wage differences. This study confirms optimistic economic assimilation for immigrants in the U.S. labor market.

    Area of Science:

    • Labor Economics
    • Sociology of Immigration

    Background:

    • Cross-sectional studies suggest immigrants have higher wage growth than native-born individuals.
    • Recent immigrant cohorts start at lower wages, challenging previous findings.
    • Potential cohort quality bias may inflate observed immigrant wage growth.

    Purpose of the Study:

    • To investigate immigrant wage growth using longitudinal data.
    • To determine if immigrant economic assimilation is accurately reflected in cross-sectional data.
    • To assess the impact of geographic distribution on immigrant wage growth.

    Main Methods:

    • Matching Current Population Survey samples for longitudinal tracking.
    • Following wages of individual immigrant and native-born men for one year.
    • Analyzing wage growth under different geographic distribution scenarios.

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    Main Results:

    • Immigrant men exhibit significantly higher wage growth than native-born men.
    • Faster immigrant wage growth persists when controlling for geographic distribution.
    • Observed wage growth aligns with cross-sectional regression predictions.

    Conclusions:

    • Longitudinal data confirms faster wage growth for immigrants.
    • Geographic distribution plays a role in immigrant assimilation patterns.
    • Findings suggest cross-sectional data may accurately reflect immigrant wage growth, despite entry wage disparities.