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17 MIGRATION & IMMIGRATION 2 - PS 4 is posted Due...

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     
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 PS 4 is posted – Due Thursday, October 28 Today: Immigration (to the U.S) & Migration within US A model of (im)migration Why do people move? Who moves? To where? Application: Immigrant enclaves Consequences for receiving labor market Domestic Migration Application: Current economic climate Application: State policies
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 
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 
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
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 
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
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  Why locate with others from home country?
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        How well do they assimilate? Observe that immigrants earnings are higher for those that have been in the U.S. longer Work experience in U.S. Earnings Natives Immigrants 12
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  Analysis of 1970 census Immigrants begin with earnings disadvantage Faster human capital accumulation than natives at older ages Country specific human capital Language How to find jobs
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   We are assuming that each cohort starts at the same level/is the same skill level Immigrate 1950 Immigrate 1960 Immigrate 1970 Earnings Year 1950 1960 1970
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   We know that economic conditions in U.S. and sending country determine the skill level of immigrants Immigrate 1950 Immigrate 1960 Immigrate 1970 Earnings Year 1950 1960 1970 Overestimate the true earnings increase. Measure. True.
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  How well to immigrants assimilate? Do more recent cohorts have lower skills than previous cohorts? Uses Social Security Earnings records – follow people over time, linked with survey Raw data: Looks like more recent cohorts of immigrants start further behind, and do not “catch up”
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    If low earning immigrants more likely to return average earning of cohort will increase over time even without “assimilation” If low earners are more likely to move back and for the “most recent” cohort will look the worst, though first time entrants may be same skill level
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