The Performance of Immigrants in the United States Labor Market

Abstract

The labor market adaptation or performance of immigrants is of concern to policymakers for several reasons. Immigrant adjustment determines, in part, their income, and hence their economic well-being level of poverty, receipt of public transfers, and tax payments, among other variables of policy relevance (see, for example, Blau, 1984; Simon, 1989). Their adjustment also determines the level of skill they supply to the destination labor market, and this, of course, has implications for the relative supply of factors of production, and hence on relative factor prices and the impact of immigrants on the macroeconomy (see, for example, Chiswick, Chiswick, and Karras, 1992). Furthermore, the labor market performance of immigrants in the destination is an important determinant of the supply of immigrants; immigration responds positively to higher wage rates and greater employment opportunities in a destination (see, for example, Jerome, 1926; Sjaastad, 1962; Schwartz, 1976; Greenwood and McDowell, 1982).