The Effect of Literacy on Immigrant Earnings

2006/01/01 by Ana Ferrer, David A. Green, W. Craig Riddell · 6 citations
Social Sciences · Economics, Econometrics and Finance · #Migration and Labor Dynamics #Migration, Ethnicity, and Economy #Labor market dynamics and wage inequality

paper · doi:10.3368/jhr.xli.2.380

Abstract

We examine the impact of literacy on immigrant earnings and the sources of lower returns to education and experience among immigrants. We find that the native-born literacy distribution dominates that for immigrants. However, the two groups obtain similar returns to literacy skills, contrary to discrimination-based explanations for immigrant—native-born earnings differentials. Among the university-educated, literacy differences account for about two-thirds of the earnings gap. However, low returns to foreign experience have a larger impact on this differential. Among the less educated, literacy differences and differences in the returns to experience have similar effects on the earnings differential.

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