This paper presents new evidence on whether foreign-born workers assimilate. While the existing literature focuses on the convergence / divergence of average wages, this study extends the analysis to the distribution of wages by looking at wage mobility. We measure the foreign-native gap in year-to-year transition probabilities from one decile group to another of a wage distribution, where the deciles are determined by native samples. Our results, based on the Current Population Survey for 1996-2008, suggest that immigrants in middle and bottom decile groups, who are the majority of immigrants, tend to fall behind relative to natives in the same decile groups.
ASJC Scopus subject areas
- Economics and Econometrics
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation