EconPapers    
Economics at your fingertips  
 

The Absorption of Highly-Skilled Immigrants: Israel, 1990-1995

Zvi Eckstein () and Yoram Weiss

No 1853, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper develops a descriptive methodology for the analysis of wage growth of immigrants, based on human capital theory. The sources of the wage growth are: (i) the rise of the return to imported human capital; (ii) the impact of accumulated experience in the host country; and (iii) the mobility up the occupational ladder in the host country. We formulate a non-linear model which is estimated, using repeated cross-section data. Using data on immigrants from the former Soviet Union to Israel, we find that upon arrival, immigrants receive no return for imported skills. In the five years following arrival, wages of highly skilled immigrants grow at 8.13% a year. Rising prices of skills, occupational transitions, accumulated experience in Israel, economy-wide rise in wages and repeated sampling account for 4.3, 3.1, 1.6, 1.2 and 2% each. There is convergence to natives in the occupational distribution, but not in wages. In the long run, the return for schooling converges to 0.044 and 0.027 for immigrants in high- and low-skill occupations, respectively, substantially below the 0.073 for natives. The return for experience converges to that of Israelis, and immigrants receive higher return for their unmeasured skills.

Keywords: absorption; Convergence; Immigrants; occupations; Wages (search for similar items in EconPapers)
JEL-codes: J24 J31 J6 (search for similar items in EconPapers)
Date: 1998-03
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1853 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: The Absorption of Highly Skilled Immigrants: Israel, 1990-1995 (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1853

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1853

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:cpr:ceprdp:1853