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Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States

Heather Antecol (), Peter Kuhn and Stephen Trejo
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Heather Antecol: Department of Economics, Claremont McKenna College

No 603, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: Using 1980/81 and 1990/91 census data from Australia, Canada, and the United States, we estimate the effects of time in the destination country on male immigrants' wages, employment, and earnings. We find that total earnings assimilation is greatest in the United States and least in Australia. Employment assimilation explains all of the earnings progress experienced by Australian immigrants, whereas wage assimilation plays the dominant role in the United States, and Canada falls in-between. We argue that relatively inflexible wages and generous unemployment insurance in countries like Australia may cause assimilation to occur along the "quantity" rather than the price dimension.

Date: 2006-02
New Economics Papers: this item is included in nep-lab and nep-mig
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