Abstract

The integration of migrants in the US economic system is a central concern of policy-makers and scholars. A faster and smoother assimilation of valuable human capital would indeed benefit the labour market, increasing its efficiency. To investigate the integration of minorities and migrants in the US labour market, we employ data from the Current Population Survey from June 2016 (the primary source of labour force statistics in the US). We focus on the following ethnic groups: White, Black, Asian, and Other (a combination of Native Americans, Pacific and Mixed). For each ethnicity we consider if respondents are US born, 1st- or 2nd-generation of immigrant descent. Among 1st-generation migrants, we further differentiate between recent (in the country for 10 years or less) and long (in the country for more than 10 years) arrivals, as they are likely to have different levels of social capital and knowledge of the job market. We focus on three very relevant labour market outcomes: being employed, being employed in a public sector job and working in a professional or managerial position. Our results indicate better placement of individuals with tertiary degrees, an effect particularly important among women. Minorities in the public sector have made some important gains in terms of occupational attainment parity with the white majority.

Highlights

  • This thematic issue focuses on the utilization of the human capital of migrants and different minority groups

  • This is in line with previous research and it confirms the existence of a widespread economic disadvantage for all ethnic minorities and migrants

  • The same is true for native Asian females whose likelihoods of employment are 15.2 percentage points lower than their White counterpart. Such a distinctive ethnic divide seems to be rooted in the private sector, since the second generation of both sexes (i.e., Black and Other) are more likely to be hired in the public sector than the white majority

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Summary

Introduction

This thematic issue focuses on the utilization of the human capital of migrants and different minority groups. In more recent research, Psacharopoulos and Patrinos (2004) suggest that only tertiary degrees can guarantee good returns; not in the case of vulnerable groups. Migrants and different minorities occupy more vulnerable positions compared to majority members and broader macro events such as the economic crisis can already weaken their precarious labour market position. No finer distinction of groups is possible as this article investigates a number of important interaction effects between ethnic group and educational credentials (obtained within and outside the US) to determine the rate of return to different degrees (which is a major focus of this special issue)

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