1,721,310 research outputs found
Sources of wage growth
Full text linkThis paper investigates the sources of wage growth over the life cycle, where individuals have the possibility to acquire vocational training at the start of their career. Wage growth is determined by sectoral and firm mobility, unobserved abil- ity and the accumulation of human capital. Workers may move between two oc- cupational sectors that require cognitive-abstract (CA) and routine-manual (RM) skills, and job mobility is induced by non-pecuniary job attributes and persistent firm-worker productivity matches. Estimating this model using longitudinal ad- ministrative data over three decades, we show that RM skills are a key driver of early wage growth while CA skills become important later on. Moreover, job amenities are an important determinant of mobility decisions. Vocational training has long term effects on career outcomes, affecting the type and quality of matches, with substantial internal rates of return both to the individual as well as society
Estimating immigrant earnings profiles when migrations are temporary
Full text linkThe assumption that all migrations are permanent, which pervaded the early microdata-based research on immigrant career profiles, is not supported by the empirical evidence. Rather, many – if not most – migrations appear to be temporary. In this paper, therefore, we illustrate the estimation challenges when migrations are temporary. As in an overwhelming share of the selective out-migration literature, our basic structure assumes that the process that determines out-migration is unrelated to other choices that affect wage growth, such as human capital investment or labour supply decisions, which greatly simplifies the analysis. When the choice of whether and when to out-migrate also affects decisions that determine wage growth, the problem becomes inherently dynamic and requires a more structural approach to estimation, which we briefly discuss
Immigration: The European Experience
Full text linkThis paper first presents a brief historical overview of immigration in Europe. We then provide (and distinguishing between EU and non-EU immigrants) a comprehensive analysis of the skill structures of immigrants and their labor market integration in the different European countries, their position in the wage distribution, and the situation of their children, and discuss the disadvantage of immigrants and their children relative to natives. We show that immigrants – in particular those from non-EU countries – are severely disadvantaged in most countries, even if we compare them to natives with the same measurable skills. We conclude with a discussion of the role of regulations and institutions as one possible mechanism for these findings, and suggest directions for future research.immigration, Europe, integration, institutions
The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation
Full text linkThis article develops and estimates a dynamic model where individuals differ in ability and location preference to evaluate the mechanisms that affect the evolution of immigrants’ careers in conjunction with their re-migration plans. Our analysis highlights a novel form of selective return migration where those who plan to stay longer invest more into skill acquisition, with important implications for the assessment of immigrants’ career paths and the estimation of their earnings profiles. Our study also explains the willingness of immigrants to accept jobs at wages that seem unacceptable to natives. Finally, our model provides important insight for the design of migration policies, showing that policies that initially restrict residence or condition residence on achievement shape not only immigrants’ career profiles through their impact on human capital investment but also determine the selection of arrivals and leavers
Intergenerational mobility and return migration: comparing sons of foreign and native born fathers
No full textThis paper studies the intergenerational mobility in earnings and education for
father-son pairs with native and foreign born fathers. We develop a simple model
which illustrates that a higher probability of a permanent migration of the parent
increases educational investments into the child. Our empirical evidence is largely
consistent with this. We find higher intergenerational mobility for father-son pairs
with native born fathers than with foreign born fathers. For the foreign born, we find
that son’s permanent wages are strongly and positively associated with the
probability of the father’s permanent migration. Investigating investments into
education, we find again a strong association between the probability of the father’s
permanent migration, and the son’s educational attainments. These effects remain if
in addition we condition on father’s education, or on father’s permanent earnings
The Career Costs of Children
Full text linkWe estimate a dynamic life-cycle model of labor supply, fertility and savings, incorporating occupational choices, with specific wage paths and skill atrophy that vary over the career. This allows us to understand the trade-off between occupational choice and desired fertility, as well as the sorting both into the labor market and across occupations. We quantify the life-cycle career costs associated with children, how they decompose into loss of skills during interruptions, lost earnings opportunities and selection into more child-friendly occupations. We analyze the long-run effects of policies that encourage fertility and show that they are considerably smaller than short-run effects
Intergenerational transmission of language capital and economic outcomes
Full text linkThis paper investigates the intergenerational transmission of language capital amongst immigrants, and the effect of language deficiencies on the economic performance of second generation immigrants. Using a long panel that oversamples immigrants, we can follow their children after they have left the parental home. Our results show a sizeable significant association between parents’ and children’s fluency, conditional on parental and family characteristics. We find that language deficiencies of the second generation are associated with poorer labour market outcomes for females only. Finally, we find a strong relationship between parental fluency and female labour market outcomes, which works through the child’s language proficiency
The economics of temporary migrations
Full text linkMany migrations are temporary - a fact that has often been ignored in the economic literature on migration. Such omission may be serious in that expected migration temporariness can impart a distinct dynamic element to immigrants' economic behavior, generating possible consequences for non-migrants in both home and host countries. In this paper we provide a thorough examination of the various aspects of temporary migrations that matter for the analysis of economic phenomena. We demonstrate the extent of temporary migrations in population movements. We show how temporariness can affect the various economic choices and how better data have improved both the measurement of nonpermanent migrations and the analyses of various aspects of migrant behavior. We propose a general theoretical framework for modeling temporary migration decisions, based on which we outline the various motives for temporariness while simultaneously reviewing related literature and available data sources. We discuss the possible consequences of migration temporariness for non-migrants in both home and host countries
Selective Outmigration and the Estimation of Immigrants' Earnings Profiles
Full text linkThis chapter begins by documenting that temporary migrations are not only very common, but that outmigration of immigrants is selective both in terms of migrants' individual characteristics and their economic outcomes. We then examine the problems that arise when estimating immigrants' earnings profiles when outmigration is selective, and discuss the identifying assumptions needed to answer three different questions on immigrants' earnings careers. We show how better data can help to relax these assumptions, suggest appropriate estimators, and provide an illustration using simulated data. We finally provide an overview of existing papers that use different types of data to address selective outmigration when estimating immigrants' earnings profiles
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