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<strong>Convergence</strong> <strong>Between</strong> <strong>Black</strong> <strong>Immigrants</strong> <strong>and</strong> <strong>Black</strong> <strong>Natives</strong><br />

<strong>Across</strong> <strong>and</strong> Within Generations*<br />

Alison Rauh**<br />

This Version: October 28, 2013<br />

Abstract<br />

The number of black immigrants living in the US has increased 13-fold from 1970 to 2010, increasing<br />

their share of the black population from 1% to 10%. <strong>Black</strong> immigrants’ labor market outcomes surpass<br />

those of native blacks. This paper determines in how far the relative success of black immigrants is passed<br />

on to the second generation. While blacks of the second generation have equal or higher education <strong>and</strong><br />

earnings levels than the first generation, the return on their unobservable characteristics is converging<br />

to that of native blacks. Race premia are put into a broader context by comparing them to Hispanics,<br />

Asians, <strong>and</strong> whites. <strong>Black</strong>s are the only group that experiences a decrease in residual earnings when<br />

moving from the first to the second generation. <strong>Black</strong> immigrants do not only converge to native blacks<br />

across generations but also within a generation. For Asians <strong>and</strong> Hispanics, residual earnings decrease<br />

monotonically with age of immigration. For blacks, the residual earnings-age of immigration profile is<br />

upward sloping for those immigrating before the age of 15. <strong>Convergence</strong> across generations is mostly<br />

driven by low-educated second generation blacks that drop out the labor force in greater numbers than<br />

low-educated first generation immigrants do. Similarly, convergence within a generation is mostly driven<br />

by low-educated blacks who immigrate when they are young dropping out of the labor force in greater<br />

numbers than those who immigrate when they are older. A social interactions model with an assimilation<br />

parameter that varies by age of immigration helps explain this phenomenon. When making their labor<br />

force participation decision, immigrant men of all races, but not women, generally place more weight on<br />

the characteristics of natives the earlier they immigrate.<br />

*I am grateful to Erik Hurst <strong>and</strong> Kerwin Charles for their support at all stages of the project. I also thank Steven Durlauf, Steve<br />

Levitt, Steve Davis, James Heckman, Aless<strong>and</strong>ra Voena, Derek Neal, Dan <strong>Black</strong>, Keith Henwood, Christopher Rauh, the University<br />

of Chicago Microlunch <strong>and</strong> Lifecycle Working Group for helpful comments. This material is based upon work supported by the<br />

National Science Foundation Graduate Research Fellowship under Grant No. (DGE-1144082). Any opinion, findings, <strong>and</strong> conclusions<br />

or recommendations expressed in this material are those of the author <strong>and</strong> do not necessarily reflect the views of the National Science<br />

Foundation.<br />

** University of Chicago, arauh@uchicago.edu.<br />

1


1 Introduction<br />

The number of black immigrants living in the US has increased 13-fold from 1970 to 2010, increasing their<br />

share of the black population from 1% to 10%. Figure 1 illustrates how black immigration from the West<br />

Indies <strong>and</strong> Africa exploded over the last few decades. Note that black immigrants also have a higher fertility<br />

rate than native blacks, which will naturally increase the share of second generation blacks. 1<br />

In 2011, black immigrant men earned close to $10,000 or 40% more than black native men. This premium<br />

shrinks to $3,000 or 7% once we condition on being employed. The analysis of employment, education,<br />

incarceration, <strong>and</strong> marriage outcomes, confirms that we are dealing with two completely different<br />

subsets of the population. <strong>Black</strong> immigrant men are much more likely than native black men to be employed,<br />

married, <strong>and</strong> not incarcerated. Schooling patterns point towards much higher college completion percentages<br />

<strong>and</strong> less high school dropouts for black immigrant men. Similar analysis applies to women though the<br />

variation in outcomes is generally compressed. 2<br />

This paper intends to answer three questions. First, how different are first generation blacks from native<br />

blacks <strong>and</strong> what are the forces underlying these differences? Second, in how far are observable characteristics<br />

such as high education levels transmitted to the second generation? Third, in how far are less salient<br />

characteristics such as motivation <strong>and</strong> dedication transmitted to the second generation? In addition to across<br />

generation transmission, this paper will also explore within generation transmission. In other words, how do<br />

immigrants that enter the US when they are young differ from immigrants who enter the country when they<br />

are old, <strong>and</strong> why do they differ?<br />

Throughout this paper I focus on 21-65 year olds in order to capture the working age population. I will<br />

distinguish between three mutually exclusive groups: immigrants, individuals born in the US with immigrant<br />

parents, <strong>and</strong> others. I will refer to them as the first generation, second generation, <strong>and</strong> natives. An individual<br />

belongs to the second generation if one or both of the parents are born abroad. <strong>Black</strong>s will be compared<br />

to Hispanics, Asians, <strong>and</strong> whites, where blacks, Asians, <strong>and</strong> whites always refer to non-Hispanic blacks,<br />

Asians, <strong>and</strong> whites. 3<br />

This paper is organized as follows. Section 2 summarizes the previous literature. Section 3 presents<br />

descriptive statistics to highlight the differences between native <strong>and</strong> immigrant blacks as well as the first<br />

<strong>and</strong> second generation. Section 4 <strong>and</strong> 5 discuss the convergence with respect to earnings across <strong>and</strong> within<br />

generations, respectively. Section 6 extends the convergence analysis to labor force participation patterns.<br />

Section 7 introduces a theoretical model that helps explain both phenomena. Section 8 concludes.<br />

1 In 2011, a black immigrant female above the age of 16 had a 48% higher probability of having a child than a native black female.<br />

While black immigrant women have a larger total fertility rate compared to native black women, their teenage pregnancy rates are<br />

half as high. In 2011, 4.2% of black native teenage girls had a child, while only 2.2% of black immigrant teenage girls did (based on<br />

author’s calculations using ACS data).<br />

2 In previous work I show that excluding black first <strong>and</strong> second immigrants increases inequality measures such as the black-white<br />

wage, employment, college completion, <strong>and</strong> incarceration gap by amounts ranging from 5 to 25% (Rauh 2013).<br />

3 For simplicity, I will often refer to Hispanics as a racial group, despite the fact that they would more correctly be defined as an<br />

ethnic group.<br />

2


2 Literature Review<br />

Thomas Sowell (1978) was one of the first authors to compare economic outcomes of immigrant <strong>and</strong> native<br />

blacks. He argued that black immigrants are a natural comparison group for black natives. Using the 1970<br />

census, he finds a positive earnings gap between West Indian immigrants <strong>and</strong> native-born blacks <strong>and</strong> argues<br />

that “color alone, or racism alone, is clearly not a sufficient explanation of the disparities within the black<br />

population or between the black <strong>and</strong> white populations”. He concludes that “cultural traditions” of nativeborn<br />

blacks st<strong>and</strong> in the way of economic achievement.<br />

Since Sowell (1978), a few studies used the 1980 <strong>and</strong> 1990 census to evaluate the relative success of black<br />

immigrants from the Caribbean (Butcher 1994, Kalmijn 1996) <strong>and</strong> from Africa (Kollehlon <strong>and</strong> Eule 2003).<br />

Butcher (1994) finds that while male annual earnings of black immigrants overall are slightly below those<br />

of native blacks, the subgroup of West indian men already display higher earnings. Kalmijn (1996) finds<br />

that success of black Caribbean immigrants is limited to British Caribbeans. Butler <strong>and</strong> Herring (1991) <strong>and</strong><br />

Bogan <strong>and</strong> Darity (2008) evaluate entrepreneurship among black immigrants <strong>and</strong> find that self-employment<br />

rates are higher for immigrant blacks than native blacks. Hamilton (2012) is one of the only researchers to<br />

use post 2000 data to evaluate labor market differences of black immigrants <strong>and</strong> black natives.<br />

What about the second generation? Analyzing the 1970 census cross-sectionally suggests that the second<br />

generation earns more than both their parents <strong>and</strong> their children (Chiswick 1977 <strong>and</strong> Carliner 1980).<br />

Borjas (1993) points out that these cross-sectional calculations ignore the relationship between the national<br />

origin differentials found among immigrants <strong>and</strong> the differences found among ethnic groups of subsequent<br />

generations.<br />

In terms of black immigrants, there is limited evidence <strong>and</strong> the little evidence at h<strong>and</strong> is mixed. On<br />

the one h<strong>and</strong>, there is the “second-generation decline” theory by Gans (1992). This hypothesis is closely<br />

linked to the “fade to black” phenomenon discussed in the sociology literature. Waters (1999) <strong>and</strong> Kasinitz<br />

et al. (2001) study the identity formation of children of West Indian immigrants. They identify three main<br />

responses by the second generation Some choose an immigrant identity, stressing national origins. Others<br />

choose a purely American <strong>and</strong> therefore African-American identity <strong>and</strong> “fade to black”. Finally some<br />

choose something in between or what Kasinitz calls “an ethnic response” <strong>and</strong> carry a Caribbean-American<br />

identity or African-not native-American identity. They point out that this might be unsuccessful if whites<br />

do not recognize the difference. Empirically, Kasinitz et al. (2001) find some evidence that among West<br />

Indians in Florida the grade point averages of the second generation are actually lower than those of first.<br />

Suarez-Orozco <strong>and</strong> Suarez-Orozco (2001) find that greater length of residence in the US is associated with<br />

lower academic motivation. On the other h<strong>and</strong>, some studies suggest that earnings of the second generation<br />

are larger than those of first <strong>and</strong> third generations. Most recently, Park <strong>and</strong> Myers (2010), using a synthetic<br />

cohort method, find overall intergenerational progress for the new second generation of all races. In summary,<br />

there are two opposing forces at work. First, the parents of second generation blacks are relatively<br />

successful, which would point towards positive outcomes. Second, the economic outcomes of black natives,<br />

3


whom the second generation might identify with, have stagnated over the past few decades, which would<br />

suggest negative assimilation.<br />

Differential labor force attachment across generations is an important mechanism underlying the convergence<br />

phenomenon. First generation immigrants are less likely to be citizens than members of the second<br />

generation. Welfare programs are well-known to affect labor market decisions. Hence it is important to<br />

discuss eligibility requirements for public benefits. One major barrier that is easily verifiable is citizenship.<br />

Details for non-citizens are discussed in Appendix D.<br />

3 Data <strong>and</strong> Descriptive Statistics<br />

3.1 Data<br />

Throughout this paper I use the current population survey data (CPS) from 1994 to 2012, <strong>and</strong> decennial<br />

census level data from 1970 through 2000 from the Integrated Public Use Series (IPUMS) <strong>and</strong> the IPUMS<br />

samples of the 2001 to 2011 American Community Survey (ACS). The post 1994 restriction for CPS data<br />

is due to availability of questions <strong>and</strong> answers on own birthplace. In order to focus on the working age<br />

population I restrict the data to individuals between the ages of 21 <strong>and</strong> 65. Census data is used from 1970<br />

onwards, since black immigration in large numbers did not start until 1970. 4<br />

3.2 Descriptive Statistics for the First Generation<br />

Table 1 presents the descriptive statistics for males <strong>and</strong> females in 1980 <strong>and</strong> 2011. In each of the four<br />

columns under both 1980 <strong>and</strong> 2011, the first two compare all blacks <strong>and</strong> all whites <strong>and</strong> the following two<br />

split blacks into black natives <strong>and</strong> black immigrants. 5<br />

In 1980 average male unconditional annual earnings for whites are $16,400. Native blacks earn about<br />

60% of that ($9,460). Immigrant blacks on average earn $9,370, which is less then native blacks, making<br />

the relative success of black immigrants a recent phenomenon. Breaking up unconditional earnings into<br />

employment probabilities <strong>and</strong> annual earnings <strong>and</strong> conditional earnings we see that both display significant<br />

black-white differences. 6<br />

In 1980, black immigrant males are more likely to be employed than native blacks (75% versus 71%)<br />

but they are still far away from the white male employment percentage of 84%. Note that as few as 57% of<br />

black African immigrants are employed in 1980. In 1980, black immigrants are more comparable to native<br />

blacks with respect to earnings, employment, <strong>and</strong> marriage rates than they are to whites. Lower incarceration<br />

4 Data limitations <strong>and</strong> procedures are further discussed in section B of the Appendix.<br />

5 Note that when using ACS <strong>and</strong> census data, native blacks include the second generation (very small subsample). This is due data<br />

limitation discussed further in Appendix B.<br />

6 Further separating conditional annual earnings out into wages, weeks <strong>and</strong> hours worked yields that all three are driving forces<br />

behind the black-white gap. While West Indian <strong>and</strong> South American black immigrants are earning as much or more than native blacks,<br />

black immigrants from Africa <strong>and</strong> other countries are earning about 90% of native blacks, thereby pulling the black immigrant average<br />

down.<br />

4


ates (1.26% versus 3.38%) <strong>and</strong> much higher educational investments, however, separate black immigrants<br />

from native blacks. Relative high investments in human capital foreshadow a narrowing of the immigrant<br />

black-white earnings gap.<br />

The relative success of black immigrant women in the labor market is already apparent in 1980. 7<br />

1980, black immigrant females have the highest probability of being employed (67%) compared to native<br />

black women (58%) <strong>and</strong> white women (56%). Average female earnings conditional on working for black<br />

immigrants are above those of native blacks <strong>and</strong> right behind those of whites.<br />

By 2011, black immigrant males display a similar relative labor market success over native black men.<br />

In 2011, average male unconditional annual earnings conditional on working for whites are $48,500. Native<br />

black workers earn about half of that equaling $24,600. <strong>Black</strong> immigrant workers average unconditional<br />

annual earnings equal $32,900 <strong>and</strong> therefore now earn about $10,000 or 44% more per year than native<br />

black workers. 8<br />

While the gaps in conditional earnings between black immigrants <strong>and</strong> natives are rather small, they<br />

are immense in employment, incarceration, marriage, <strong>and</strong> schooling outcomes. 76% of both white males<br />

<strong>and</strong> black immigrant males aged 21-65 were employed in 2011. Only 59% of black males aged 21-65 were<br />

employed, a number that drops to 57% when black immigrants are excluded. 59% of native blacks’ education<br />

is a high school degree or less, while only 43% of both whites <strong>and</strong> immigrant blacks fall into this category.<br />

14% of native blacks obtain a college degree while 32% of whites <strong>and</strong> 30% of immigrant blacks obtain a<br />

college degree or more. 9 Incarceration probabilities of males display the greatest differences. Incarceration<br />

probabilities for white males <strong>and</strong> black immigrant males lie in between 1% <strong>and</strong> 2% while native black males<br />

have an over 8% chance of being imprisoned in 2011. A much higher fraction of black immigrant males <strong>and</strong><br />

white males than native black males are married (53% <strong>and</strong> 57% versus 34%).<br />

The African subgroup of black immigrant males display very interesting characteristics (see Table A.1<br />

in the Appendix for break-down by country of origin). From 1980 to 2011 Africans went from being the<br />

least likely black immigrant group to be employed to being the most likely black immigrant group to be<br />

employed. Except for conditional earnings, which are close to the black immigrant average, black African<br />

immigrants outperform not only black natives but also whites in most outcomes. <strong>Black</strong> African males have<br />

a much higher chance of employment (80% versus 57%), lower chance of incarceration (1.05% versus<br />

8.35%), <strong>and</strong> more college graduates (43% versus 14%) than black native males. Starting with Sowell in<br />

1978 <strong>and</strong> followed by numerous studies in the 1990s, authors examined whether West Indian immigrants are<br />

more successful than native blacks <strong>and</strong> Model’s 2008 book title asked the pertinent question “West Indian<br />

7 When comparing earnings <strong>and</strong> employment outcomes of white <strong>and</strong> black women, differences in marriage propensities <strong>and</strong> labor<br />

force participation rates are important to be kept in mind.<br />

8 Analyzing conditional annual earnings <strong>and</strong> employment, we see that the difference between native <strong>and</strong> immigrant blacks is mostly<br />

driven by employment probabilities. Separating annual earnings as before, we see that the black-white gaps in weeks <strong>and</strong> hours worked<br />

have narrowed. Hence it is primarily wages <strong>and</strong> to a lesser degree hours <strong>and</strong> weeks worked that are driving the black-white conditional<br />

earnings gap. The same is true for the native black-immigrant black conditional earnings gap.<br />

9 While the high school <strong>and</strong> college degree categories include individuals with the relevant degree, the graduate school category<br />

simply implies that individuals continued school after college (whether they graduated form their program or not.)<br />

In<br />

5


<strong>Immigrants</strong>: A black success story?” (Model 1991, 1995, 2008, Butcher 1994, Kalmijn 1997, Waters 1999).<br />

These results raise the possibility of a new question: “African <strong>Immigrants</strong>: The black success story?” 10<br />

Panel B of Table 1 displays the same mean outcomes for women in 2011. At first glance, we can<br />

already see that the variation in outcomes across groups is much less than that of men. Conditional <strong>and</strong><br />

unconditional annual earnings of native black women are at 91% <strong>and</strong> 78% of those of white women, which<br />

points to a much more equal distribution than that of men (64% <strong>and</strong> 48%). The gap in the fraction employed<br />

between whites <strong>and</strong> native blacks falls from 20 percentage points to 5 points. Incarceration probabilities for<br />

females are below 1% for all subgroups but native black women are still two <strong>and</strong> a half times more likely<br />

to be imprisoned than white women. Educational patterns display the same relations as those for men but<br />

the variability is compressed. Differences in marriage probabilities are an exception. White women aged<br />

21-65 are more than twice as likely to be married as native black women (59% <strong>and</strong> 28%), while the black<br />

immigrant female marriage probability lies in between these two rates (45%). 11<br />

3.3 Descriptive Statistics for the Second Generation<br />

Section 3.2 established that black first generation immigrants look very different than black natives. From a<br />

theoretical perspective it is unclear what will happen to the second generation since there are two opposing<br />

forces at work. First, the parents of second generation blacks are relatively successful, which would point<br />

towards positive outcomes. Second, the economic outcomes of black natives, whom the second generation<br />

might identify with, have stagnated over the past few decades, which would suggest negative assimilation.<br />

Table 2 compares education <strong>and</strong> earnings outcomes of both generations for working age men. Due<br />

to small sample sizes in the CPS, observations are pooled over the 5-year period from 2008-2012. At<br />

first glance, it seems that earnings <strong>and</strong> employment outcomes of second generation black men are low <strong>and</strong><br />

comparable to those of native blacks (Panel A). Note, however, that the average second generation black is<br />

more than 8 years younger than the first generation immigrant. Since earnings increase steeply until the mid<br />

forties, column 5 uses inverse probability weighting to equalize the age distribution of the first <strong>and</strong> second<br />

generation. Now sons of black immigrants earn $3000 or 8% more than the average first generation black<br />

immigrant. 12 The fraction of second generation blacks with a college degree is 35% or 4 percentage points<br />

higher than those of the first generation. In terms of marriage patterns, however, the second generation seems<br />

to be converging to native blacks, rather than the first generation. While 60% of the black men in the first<br />

generation are married, only about 43% of both natives <strong>and</strong> sons of immigrants are are married. This points<br />

to different integration patterns between labor market <strong>and</strong> marriage market outcomes.<br />

10 There are several reasons to be cautious about these results <strong>and</strong> they certainly require further investigation. First, many African<br />

immigrants come to the US to attend college or graduate school so they are a very select group. This is not a problem with my hypothesis<br />

per se since self-selectivity of immigrants is part of the reason black-white gaps are underestimated. Second, immigrants that do not<br />

become naturalized are likely to be deported for severe crimes. Hence we would expect immigrants’ incarceration probabilities to be<br />

lower even if their probability of being convicted of a crime that would lead to incarceration were identical.<br />

11 See Charles <strong>and</strong> Luoh (2011) for a link between increased male incarceration rates <strong>and</strong> decreased female marriage rates.<br />

12 The second generation premium equals 5% for white <strong>and</strong> Asian men <strong>and</strong> a striking 35% for Hispanic men.<br />

6


For women both of these trends seem to be even more pronounced (Panel B). The second generation,<br />

once adjusted to have the same age distribution as the first generation, has an earnings premium of $8,600<br />

over native blacks, $6,700 over first generation, <strong>and</strong> $3,600 over whites. The fraction of second generation<br />

blacks with a college degree is 6% or 2 percentage points higher than those of the first generation. Only<br />

38% of women in the second generation are married, which is close to the average of native blacks (39%)<br />

<strong>and</strong> much lower than marriage probabilities of the women of the first generation (57%) <strong>and</strong> white women<br />

(65%).<br />

Note that 81% of second generation black men are participate in the labor force <strong>and</strong> 70% are employed.<br />

These numbers lie in between those of native <strong>and</strong> first generation immigrant blacks. This foreshadows<br />

the convergence in labor force attachment <strong>and</strong> employment probabilities across generations, which will be<br />

further discussed in the subsequent sections.<br />

These results suggest that in terms of observable characteristics, with the exception of employment<br />

probabilities, the second generation is following the relatively successful path laid out by their parents. They<br />

have similar earnings <strong>and</strong> even higher human capital investments.<br />

4 <strong>Convergence</strong> <strong>Across</strong> Generations<br />

We have established that black immigrants have large earnings premiums over black natives. Furthermore,<br />

we know that high human capital investments of the first generation carry over to the second generation.<br />

Now let us look at more subtle differences between generations. Using CPS data, we want to control for<br />

education, potential experience, state <strong>and</strong> year fixed effects <strong>and</strong> analyze the residual premium or penalty for<br />

being a black first generation immigrant versus a member of the second generation.<br />

Table 3 <strong>and</strong> 4 focus on black men <strong>and</strong> women, respectively. In column (1) all immigrants are included.<br />

Columns (2) - (6) limit first generation immigrants to those who spent over 10 years in the US. This allows<br />

us to focus only on permanent immigrants; immigrants who are more likely to be parents of the subsequent<br />

second generation. We see that if all immigrants are included, both the coefficient on the first <strong>and</strong> second<br />

generation are positive <strong>and</strong> insignificant. When recent immigrants are excluded, the coefficient on the first<br />

generation increases to close to 5% <strong>and</strong> is significant at the 1% level. Including state fixed effects shrinks<br />

the coefficient to about 3.5% <strong>and</strong> the significance level decreases to 5%. This suggests that location choice<br />

explains some of the premium of first generation immigrants. The coefficient on the second generation is<br />

smaller (around 2%) <strong>and</strong> insignificant in all regression. For women, the coefficient on being a first generation<br />

immigrant is significant at the 1% level throughout all regressions. The second generation coefficient is<br />

insignificant once state fixed effects are controlled for. The difference between the first <strong>and</strong> second generation<br />

premium is about 2 percentage points for men <strong>and</strong> 3.5 percentage points. This difference, however, is<br />

neither statistically significant for women nor for men.<br />

Column (5) <strong>and</strong> (6) restrict the sample to labor force participants <strong>and</strong> employed individuals, respectively.<br />

The convergence to natives disappears for both of these subsamples. This suggests that most of the con-<br />

7


vergence is driven by the higher employment probabilities of the first generation compared to the second<br />

generation. This hypothesis will be further explored in Section 6. For women, the convergence remains<br />

although it falls to 2 percentage points for labor force participants <strong>and</strong> 1 percentage point for employed<br />

women.<br />

So far we compared first <strong>and</strong> second generation blacks to native blacks. In order to put the residual race<br />

premium in a broader context, column (2) is now also performed for blacks, as well as Asians, Hispanics,<br />

<strong>and</strong> whites (Table 5 <strong>and</strong> Table 6). The results are striking. <strong>Black</strong>s are the only group that experience a<br />

decrease in the race premium when moving from the first to the second generation. This is true for both men<br />

<strong>and</strong> women. The increase in the race premia for other races reaches from one percentage point for white<br />

men to 12 percentage points for Hispanic women.<br />

Up until now, we compared races among themselves. In order to compare these estimates directly,<br />

blacks, Hispanics, <strong>and</strong> Asians are now compared to a common reference group: white natives. Furthermore,<br />

the subsequent plots will explore how these premia/penalties have evolved over time. Regressions control<br />

for education, potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation<br />

immigrants also controls for time spent in the US. 13 Figures 2 <strong>and</strong> 3 show the earnings premium or penalty<br />

for being black, Asian, or Hispanic for men <strong>and</strong> women, respectively. The reference group is white native<br />

men for Figure 2 <strong>and</strong> white native women for Figure 3. 14 The panels are ordered in terms of time spent in<br />

the US, i.e the first, the second, <strong>and</strong> finally the third generation <strong>and</strong> beyond. 15<br />

The downward spike from 2001-2003 is associated with two phenomena. First, severe data anomalies<br />

when switching from the census to ACS from 2000 to 2001 are well established in the literature. 16 Second,<br />

September 11th led to a sharp increase in suspicion <strong>and</strong> animosity towards Muslims as well as other immigrants.<br />

However, the decrease in labor market outcomes are found to be short-lived. 17 For expositional<br />

clarity, I exclude the years 2001-2003 in Figure 4 <strong>and</strong> 5. This erases the large downward spike in the race<br />

premia of first generation immigrants.<br />

The evolution of the male race penalties in Figure 4 is striking. While Asian <strong>and</strong> Hispanic men have<br />

experienced a small increase or even a decrease in their penalties across subsequent generations. the penalty<br />

on being black increases substantially as we move from the first to the second, to the third <strong>and</strong> greater<br />

generations of blacks. Holding education, experience, <strong>and</strong> state location constant, a black immigrant male<br />

earns 17% less than a white native male in 2011. This penalty increases to 27% for a black male of the<br />

13 Due to small sample sizes, years 2004-2006, 2007-2009, <strong>and</strong> 2010-2011 are pooled for the ACS samples. For the CPS samples<br />

1994-1998, 1999-2003, 2004-2008, <strong>and</strong> 2009-2012 are pooled.<br />

14 Focusing exclusively on employed individuals do not change the main take-aways as Figure A.1 <strong>and</strong> Figure A.2 demonstrate.<br />

Figures are cut off at 1990 to make the comparison with the second generation easier (1994 <strong>and</strong> beyond). Figure A.3 <strong>and</strong> Figure A.4<br />

depict the same race premia from 1970 onwards<br />

15 The 95% confidence intervals on Figures 2 through 12, as well as A.1 through A.5 are very tight, barely visible, <strong>and</strong> therefore not<br />

depicted.<br />

16 The driving differences seem to come from the unemployed.<br />

17 Kaushal et al. (2007) find that September 11th was associated with a 9-11 percent decline in the real wage <strong>and</strong> earnings of Arab<br />

<strong>and</strong> Muslim men. Orrenius <strong>and</strong> Zavodny (2006) find a decline in employment <strong>and</strong> earnings among Hispanic immigrants. These are just<br />

a select few among many papers exploring the effect of September 11th on labor market outcomes of different types of immigrants.<br />

8


second generation <strong>and</strong> reaches an astounding 34% for a black native male. In 2000, the gradient was even<br />

sharper starting with a 9% penalty for black immigrants, passing through 28% for the second generation <strong>and</strong><br />

reaching 35% for black natives. The smoothing of the gradient is driven by an increase in the race penalty<br />

for first generation immigrants, rather than an amelioration of the race penalty of native or second generation<br />

blacks. As Figure 5 shows, the same pattern holds for black women. For women, the decrease in the race<br />

effect across generations is certainly unique to blacks. Asian <strong>and</strong> Hispanic women increase their earnings<br />

premia as they move to the next generation. In summary, comparisons within races <strong>and</strong> across races yield<br />

that black immigrants are the only racial group to consistently experience a decrease in their race premium<br />

as they move across generations.<br />

There are three potential explanations for the convergence of black immigrants to black natives across<br />

generations. First, immigrants are likely to be favorably selected in terms of motivation, dedication, <strong>and</strong> other<br />

cognitive <strong>and</strong> non-cognitive skills not captured in years of education <strong>and</strong> location choice. These might only<br />

get partially transmitted to the next generation. One would expect Hispanics <strong>and</strong> Asians to be positively<br />

selected along similar dimensions. However, Hispanic <strong>and</strong> Asian men <strong>and</strong> women do not experience a<br />

deterioration of the returns to their unobservable skills across generations. The returns, however, do converge<br />

to those of natives the same way those of blacks do.<br />

Second, black immigrants may not face the same potential discrimination <strong>and</strong> prejudice that native blacks<br />

do. This could be due to a distaste for native blacks or statistical discrimination. Immigrant blacks are<br />

recognizably different from native blacks in that they are likely to have an accent. It is possible that an<br />

accent is a plus in the labor market for blacks, increasing interview <strong>and</strong> on the job success. Growing up<br />

in the US, the second generation will not have an accent. While their names might hint at an African or<br />

Caribbean origin, they blend into native blacks more smoothly than do immigrant blacks. Figure 4 <strong>and</strong> 5<br />

suggest that the elimination of this immigration signal might impose a penalty for the second generation.<br />

Third, the fall in the black race premium from the first to the second, to the third <strong>and</strong> greater generations<br />

could be explained with the “fade to black” phenomenon discussed in the sociology literature. Outcomes of<br />

black natives, whom the second generation might identify with, have stagnated over the past few decades,<br />

which would suggest negative assimilation for blacks.<br />

Comparing Figure 4 with Figure 5, some interesting patterns emerge. The convergence across generations<br />

that does indeed seem to be happening, proceeds somewhat differently for men <strong>and</strong> women. Moving<br />

across generations, the penalty for men drops significantly more than it does for women. Women, however,<br />

switch their ranking among racial groups. While black women have the highest return on their unobservables<br />

in the first generation, they have the lowest return as natives.<br />

5 <strong>Convergence</strong> Within a Generation<br />

If there is convergence across generations, it seems reasonable to think there might be convergence within a<br />

generation. In other words, if first generation immigrants immigrate earlier, they are more likely to assimilate<br />

9


with natives, possibly opening themselves up to discrimination. A confounding factor is the well-established<br />

fact that there is a earnings penalty for immigrants followed by a rise in earnings roughly proportional to the<br />

time spent in the US. In order to avoid dealing with the earnings penalty, the regressions control for time<br />

spent in the US <strong>and</strong> only focus on immigrants who have been in the US for 10 years or more. 18<br />

Immigrant children who get exposed to second languages during childhood generally achieve higher<br />

second language proficiency than those beginning as adults (Krashen et al. 2011). Since many African <strong>and</strong><br />

Caribbean immigrants come from countries where English is one of the official languages, accent <strong>and</strong> dialect<br />

become more important than language proficiency. Many studies link the beginning of puberty to accent<br />

acquisition; in other words, immigrants who arrive before puberty are much more likely to sound native than<br />

immigrants who arrive after. Since language proficiency <strong>and</strong> ease of assimilation decline monotonically with<br />

age of immigration, these two forces suggest a negative relation between age of immigration <strong>and</strong> earnings.<br />

Positive forces such as self-selection <strong>and</strong> motivation due to hardship forged by life experiences in the source<br />

country are counteracting forces.<br />

Figures 6a <strong>and</strong> 6b plot the coefficients on age of immigration by race for men <strong>and</strong> women from the<br />

following regression:<br />

ln(Earn)=l s + h t +<br />

M<br />

Â<br />

m=1<br />

b 1m m + b 2 Pot. Exp it + b 3 Pot Exp 2 it +<br />

4<br />

Â<br />

k=1<br />

b 4k School kit + b 5 YrsUSA it + e ismt (1)<br />

where i denotes the individual, s denotes the state of residence, m denotes the age at arrival in the US,<br />

t is the survey year, b 2 <strong>and</strong> b 3 capture labor market experience, the b 4k s capture different schooling levels<br />

(high school, some college, college, more than college), <strong>and</strong> b 5 accounts for the increase in earnings due<br />

to increased time spent in the US. Earnings are adjusted to all be in 2010 dollars. Each regression is run<br />

separately for different races <strong>and</strong> ethnicities <strong>and</strong> the control group are natives of the same group.<br />

For Hispanics <strong>and</strong> Asians, the immigrant premium monotonically declines with age of immigration. For<br />

whites <strong>and</strong> blacks, however, things look different. The premium actually increases until the age of 15 <strong>and</strong><br />

then starts to fall but never to the level of Hispanics <strong>and</strong> Asians. This is well past the average begin of<br />

puberty for boys (11-12) <strong>and</strong> girls (10-11). What could explain the difference between the evolution of age<br />

of immigration effects for these groups? Perhaps, a foreign accent for blacks <strong>and</strong> to a lesser extent for whites<br />

serves as a benefit in the labor market. <strong>Black</strong> native men have certain stereotypes attached to them that can<br />

be a disadvantage in the labor market. <strong>Black</strong> men who arrived past the age of 11 or 12 likely sound different<br />

than natives <strong>and</strong> thus can distinguish themselves from black natives in the labor market. The discrimination<br />

explanation is difficult to distinguish from assimilation. Potentially, blacks who immigrate later assimilate<br />

to a lesser degree with black natives, a group that generally falls behind whites in education <strong>and</strong> income<br />

18 Due to small sample sizes individuals are pooled in three years bins by age of immigration. For example, individuals at the 15<br />

year mark were between 14 <strong>and</strong> 16 years old when they arrived in the US. The figures are cut off at age 40 due to subsequent sampling<br />

noise with small bin sizes. The sample is restricted to the 2000 census <strong>and</strong> the 2001-2011 ACS, since pre-2000, year of immigration<br />

was only recorded in bracketed form.<br />

10


levels. 19<br />

Past the age of 15, the black immigrant premium falls monotonically with age of immigration, suggesting<br />

that the benefit of acquiring country specific capital at an early age outweighs any negative effect from<br />

discrimination or assimilation with natives. 20<br />

Group Differences<br />

During the 1960s <strong>and</strong> linked to the Civil Rights Act of 1964, many elite school started various affirmative<br />

action measures in order to increase the enrollment of African Americans. The emphasis on diversity not<br />

only increased the number of native blacks but also led to a sharp increase in the representation of blacks<br />

of immigrant origin. This spurred a controversial debate about the purpose <strong>and</strong> effect of affirmative action<br />

policies. At the 2004 reunion of Harvard’s black alumni, Henry Louis Gates <strong>and</strong> Lani Guinier pointed out<br />

that while Harvard’s undergraduates were 8% black, the majority of them were West Indian <strong>and</strong> African<br />

immigrants or their children (Rimer <strong>and</strong> Arenson 2004). They said that only about one third of African<br />

Americans at Harvard were descendants of slaves with all four gr<strong>and</strong>parents born in the US. 21 If blacks<br />

immigrants were much more likely than Asians or Hispanics to immigrate in order to attend high school<br />

or college, teenagers would be much more positively selected <strong>and</strong> no discrimination or assimilation story<br />

would be needed to reconcile the data. In order to test this hypothesis, equation 1 is run on the subsample<br />

of relatively low-educated immigrants (high school or less). Figure 7a <strong>and</strong> 7b show that the difference in<br />

patters of coefficients persists <strong>and</strong> is even more pronounced.<br />

The pronounced pattern for low-educated men <strong>and</strong> women suggests that it’s the lower tail of the skill<br />

distribution that is driving the convergence phenomenon. Therefore, it makes sense to break-up the sample<br />

by employment status. Figure 8a <strong>and</strong> 8b restrict the sample to employed individuals <strong>and</strong> the pattern persists.<br />

Another alternative explanation is that black immigrants choose their location more carefully. While<br />

Caribbeans do not have along distance to travel, Africans do. This could make their location more deliberate<br />

than many Hispanic immigrants crossing the border into California, Arizona, New Mexico, <strong>and</strong> Texas. In<br />

order to explore this explanation, blacks are split into those with African <strong>and</strong> Caribbean roots in Figure<br />

9a <strong>and</strong> 9b. Subsequently, blacks are split by refugee status in Figure 9c <strong>and</strong> 9d. Refugee status is an<br />

approximate measure constructed by consulting the Office of Refugee Resettlement (ORR) data <strong>and</strong> the<br />

World Fact Book. 22<br />

19 The possible confounding factor that parents who immigrate when their children are infants may differ systematically from parents<br />

who immigrate when their children are teenagers is explored in section 6.3.<br />

20 If education is viewed as an endogenous outcome (Neal <strong>and</strong> Johnson 1996), education dummies should be excluded from the<br />

controls in the earnings regression. Excluding education controls does not change the overall shape of the black residual plot, but erases<br />

the downward slope for Hispanics, Asians, <strong>and</strong> whites. The residual for blacks <strong>and</strong> whites remains far above those of Hispanics <strong>and</strong><br />

Asians.<br />

21 Vigorous debates about the purpose of affirmative action followed <strong>and</strong> some say black immigrants are not the appropriate beneficiaries<br />

of affirmative action policies that intended to help those disadvantaged by the legacy of Jim Crow laws. Massey et al. (2007)<br />

find that the representation of immigrant-origin blacks at selective institutions is roughly double their share in the population. For ivy<br />

league schools it is almost four-fold.<br />

22 Details on how refugee status was constructed are in the data appendix.<br />

11


The Earning-Age of Immigration profile is more positively sloped for African <strong>and</strong> Caribbean blacks<br />

than those of other races. For Africans it is steeply upward sloping for both men <strong>and</strong> women. Both, African<br />

men <strong>and</strong> women on average have higher earnings premia than black Caribbeans. Refugees have a even<br />

steeper earnings-age of immigration profile than non-refugees, suggesting that deliberate location choice is<br />

not driving this pattern. Refugee men have exceptionally high return on their unobservables. This is in line<br />

with Cortes’s (2004) finding that from 1980 to 1990 refugees made greater gains in English proficiency,<br />

working hours, <strong>and</strong> wages, than economic immigrants.<br />

<strong>Black</strong> immigrants are much more likely than Asians <strong>and</strong> Hispanics to come from countries where English<br />

is an official language. This could lead to a decreased weight placed on arriving early. To explore this<br />

hypothesis, Figure 9e <strong>and</strong> Figure 9f split black immigrants into blacks who come from countries where<br />

English is an official language <strong>and</strong> those that do not. <strong>Immigrants</strong> from English speaking countries indeed<br />

have a less negatively sloped gradient for men <strong>and</strong> a more positively sloped gradient for women. <strong>Immigrants</strong><br />

from countries where English is not listed as an official language still have a considerably less negatively<br />

sloped earnings-age of immigration profile than Asians <strong>and</strong> Hispanics.<br />

6 The Importance of Labor Force Participation Differences<br />

6.1 <strong>Across</strong> Generation Comparison<br />

From Table 2 we already learned that labor force participation decisions differ significantly between blacks<br />

of the first <strong>and</strong> second generations. While 86% of black first generation males participate in the labor force,<br />

only 81% of age-adjusted second generation males are labor force participants. This difference does not<br />

exist for women where 76% of first generation females <strong>and</strong> 77% of second generation females participate in<br />

the labor force.<br />

Section 4 established that much of the convergence for women <strong>and</strong> all of it for men can be explained<br />

by differential labor force attachment propensities across generations. In order to underst<strong>and</strong> more about<br />

the convergence phenomenon, the subsequent regressions focus on labor force participation as an outcome<br />

variable.<br />

Table 7 <strong>and</strong> 8 focus on black men <strong>and</strong> women, respectively. In column (1) all immigrants are included.<br />

Columns (2) - (6) limit first generation immigrants to those who spent over 10 years in the US. This allows<br />

us to focus only on permanent immigrants; immigrants who are more likely to be parents of the subsequent<br />

second generation. We see that if all immigrants are included, the decrease in labor force participation is 10<br />

percentage points (.0806 - (-.0196)) for men. When recent immigrants are excluded, the decrease increases<br />

to close to 13 percentage points. Including state fixed effects shrinks the gap to about 11 percentage points.<br />

Column (5) restricts the sample to low-educated individuals (high school degree or less). For low-educated<br />

black men the decrease reaches 18 percentage points. This highlights the importance of differential labor<br />

force attachment for low-educated blacks across generations in explaining the convergence between black<br />

12


immigrants <strong>and</strong> black natives.<br />

As discussed in Section E of the Appendix, the welfare program eligibility requirements are complex<br />

for first generation immigrants <strong>and</strong> much more restricted than those for the second generation who generally<br />

are citizens. The simplest <strong>and</strong> most crude way to deal with these welfare program eligibility requirements,<br />

is to restrict the sample to US citizens (column (6)). US citizens, ceterus paribus, face the same eligibility<br />

requirements <strong>and</strong> hence the first <strong>and</strong> second generation can be compared readily. The first generation remains<br />

12 percentage points more likely to be attached to the labor force. This suggests that eligibility requirements<br />

of welfare programs alone cannot possibly explain the convergence to native black labor force attachment<br />

patterns from first to second generation. Women display a similar pattern although decrease in the labor<br />

force participation probability is smaller, hovering around 8 percentage points. Tables A.2 <strong>and</strong> A.3 in the<br />

Appendix show that conditional on being in the labor force, the black first generation is also more likely to<br />

be employed than the black second generation (about 3 percentage point difference for men <strong>and</strong> 1 percentage<br />

point difference for women).<br />

Note also that the coefficients on the second generation are negative <strong>and</strong> mostly statistically significant<br />

for men <strong>and</strong> women. Hence, the second generation, holding potential experience <strong>and</strong> education constant, are<br />

generally less likely to participate in the labor force than both, black first generation immigrants, <strong>and</strong> black<br />

natives.<br />

Now the question arises whether the decrease in the labor force attachment when moving from the<br />

first to the second generation is a distinctly black phenomenon or whether it can be found in all races. In<br />

order to avoid confounding factors related to welfare program eligibly requirements, Table 9 <strong>and</strong> 10 run the<br />

baseline regression on the citizen sample only. Other races also experience a decrease in the labor force<br />

attachment from the first to the second generation, though much smaller than the decrease experienced by<br />

blacks. Hispanic, Asian, <strong>and</strong> white men decrease their labor force participation by 6, 4, <strong>and</strong> 3 percentage<br />

points (0, 1, 2 for women), respectively. Tables A.4 <strong>and</strong> A.5 in the Appendix show that the decrease in<br />

employment probabilities conditional on labor force participation are generally also larger for blacks than<br />

for other races.<br />

While other races also decrease their labor force attachment as they move from the first to the second<br />

generation, there are two main differences compared to blacks. First, the decreases are much smaller than<br />

they are for blacks. Second, this negative effect on overall earnings is outweighed by second generation<br />

benefits, making the overall premium of belonging to the second generation positive for all groups except<br />

for blacks.<br />

6.2 Within Generation Comparison<br />

Since we find convergence in labor force attachment patterns across generations, we would expect there to be<br />

a similar convergence within generations. In other words, as first generation immigrants immigrate earlier,<br />

their probability of participating in the labor force should decrease, ceterus paribus.<br />

13


Regressions underlying Figure 10a <strong>and</strong> 10b test this hypothesis by running labor force participation on a<br />

set of controls <strong>and</strong> age of immigration dummies. To avoid differences in welfare eligibility requirements, the<br />

sample is restricted to US citizens. For men, we see a clear upward-sloping trend in labor force participation<br />

by age of immigration for all races. For black, Hispanic, <strong>and</strong> Asian men the coefficient starts at about<br />

0, suggesting that these immigrant groups portray the same labor force participation patterns as natives<br />

when they immigrate as newborns. Similar to the across-generation analysis, blacks experience the greatest<br />

gradient in labor force participation patterns in the within generation analysis. All else equal, a male black<br />

immigrating in his late thirties is 20 percentage points more likely to participate in the labor force than a<br />

black immigrant who arrives as a newborn. For females this difference reaches a striking 30 percentage<br />

points.<br />

For log earnings, the convergence between black immigrants <strong>and</strong> black natives is especially pronounced<br />

for low-educated immigrants. To see whether the same holds true for labor force participation, Figure 11a<br />

<strong>and</strong> 11b restrict the sample to individuals with a high school degree or less. Now both, black immigrant men<br />

<strong>and</strong> women who arrive in their late thirties are 30 percentage points more likely to participate in the labor<br />

force than blacks who arrive when they are infants.<br />

Self-selection is more likely to be important as age of immigration increases <strong>and</strong> interacts with the<br />

assimilation effect. If immigrants in their 30s migrate to the US, they are likely migrating in order to find a<br />

job. Hence we would expect labor force participation behavior of their peers to be less important. To test this<br />

hypothesis Figure 12a <strong>and</strong> 12b split the black sample into immigrants from countries with many refugees <strong>and</strong><br />

from countries without. Refugees have different motives for migrating than economic immigrants. While<br />

refugees are likely fleeing political or religious persecution, economic immigrant’s main motive is likely<br />

work-related. Figure 12a <strong>and</strong> 12b show that the strong assimilation in labor force participation of blacks is<br />

indeed driven by immigrants from non-refugee countries. There are two reasons to believe that assimilation<br />

is important beyond its interaction with self-selection. First, children under the age of 15 are probably<br />

accompanying their parents <strong>and</strong> not selecting to leave their home country on their own. The upward-sloping<br />

pattern holds for young children as well as adults. Second, the gradients differ greatly by race, which is<br />

likely to be, at least in part, due to differences in assimilation patterns.<br />

6.3 Robustness Check<br />

Focusing on children alone, the possibility remains that parents who immigrate when their child is an infant<br />

might be very different from parents who immigrate when their child is a teenager. In order to address<br />

this issue, we can look at children who still live with their parents <strong>and</strong> see whether there are any apparent<br />

differences in parental characteristics across age of immigration of the child.<br />

The new sample is restricted to children <strong>and</strong> teenagers that are 15 or younger in the 1990 census. This<br />

allows for most individuals to be old enough to hypothetically make it into the 2000-2011 adult sample<br />

without having to work with the coarse 5-year year of immigration bins in earlier censuses. Figures 12a<br />

14


<strong>and</strong> 12b show the results of regressing log earnings of the household head <strong>and</strong> family log income on age of<br />

immigration dummies by race. The only control is years spent in the US due to the well-established fact that<br />

immigrant earnings increase significantly with time spent in the US. A child who immigrated as an infant is<br />

likely to have parents who have been in the US longer than a 15-year-old who just immigrated. We can see<br />

that for Hispanics, blacks, <strong>and</strong> whites, there is no clear up- or downward trend that holds for both earnings<br />

measures. For Asians there is downward trend suggesting that parents who immigrate with infants are more<br />

positively selected in terms of earnings power than Asians who immigrate with an older child.<br />

Figure A.6 depicts the same results without controlling for time in the US <strong>and</strong> indeed all of earnings/income<br />

- age of immigration gradients are now downward-sloping. If we take this specification to<br />

be correct, the convergence story is actually strengthened. <strong>Black</strong> parents who immigrate with an infant are<br />

more positively selected in terms of earnings power, <strong>and</strong> yet, their children earn less <strong>and</strong> drop out of the<br />

labor force more.<br />

7 Labor Force Participation Choice Model<br />

7.1 Theoretical Model<br />

Given that the labor force participation decision is the strongest force behind the convergence between black<br />

immigrants <strong>and</strong> black natives, this section builds a model to better underst<strong>and</strong> the decision-making process.<br />

The model builds on the decision-making problem introduced in Blume et al. (2010) among others. For<br />

simplicity, the model presented here is a linear probability model. To avoid differences in welfare eligibility<br />

requirements, the sample again is restricted to US citizens.<br />

The model studies the joint behavior of individuals who are members of a common group g. The population<br />

size of each group g is n g . The goal is to probabilistically describe the individual i’s choice: w i,g . The<br />

set of possible behaviors from which choices are made is W i,g . Using st<strong>and</strong>ard notation, w i,g denotes the<br />

choices of others in the same group. Let x i be a vector of observable individual specific characteristics. y g is<br />

a vector of observable group-specific characteristics. µ i e(w i,g) is an unobservable probability measure that<br />

describes the beliefs individual i has about behaviors of other in the group. Let e i be a vector of unobservable<br />

r<strong>and</strong>om individual-specific characteristics associated with i <strong>and</strong> y g be a vector of unobservable r<strong>and</strong>om<br />

group-specific characteristics. Individual choices are characterized as maximizations to a payoff function V,<br />

w i,g = argmax l2Wi,g V (l,x i ,y g , µ e i (w i,g ),e i ,y g ) (2)<br />

Much of the empirical literature has focused on a linear in means model of the following form 23<br />

23 This linear in means model can be derived as a Bayes-Nash equilibrium of a game in which each individual’s choice is determined<br />

by a private benefit <strong>and</strong> a conformity benefit. The utility functions are quadratic <strong>and</strong> the conformity benefit is linearly decreasing in the<br />

quadratic deviation of an individual’s choice from the average behavior of the group (see Blume et al. (2010) for a derivation).<br />

15


w i,g = k + cx i + dy g + Jm e i,g + e i (3)<br />

where m e i,g denotes the expected average of other people’s decisions in the group,<br />

m e i,g = 1 n  j2gE(w j |F i ). (4)<br />

As in Manski’s original formulation, y g = ¯x g , where ¯x g = 1 n g<br />

 i2g x i denotes the average across i of x i<br />

within a given g. Coefficient vector c <strong>and</strong> scalar J capture contextual <strong>and</strong> endogenous effects. 24 Under the<br />

assumption y g = ¯x g , every contextual effect is the average of a corresponding individual characteristic<br />

m g = k +(c + d) y g<br />

1 J<br />

We see that m g is linearly dependent on the other regressors, i.e. the constant <strong>and</strong> y g . This linear<br />

dependence implies that the identification of the full set of structural parameters fails. For this study, the<br />

parameter of interest is a (to be introduced), <strong>and</strong> not c or J. Hence, this paper will not further deal with<br />

conditions that could be put in place to restore identification of all parameters. 25<br />

What group g do first generation immigrants belong to? In other words, which individuals affect their<br />

decision to participate in the labor force? Figures 10a <strong>and</strong> 10b showed that an immigrant’s labor force<br />

participation decision varies considerably by age of immigration. This suggests that immigrants assimilate<br />

with natives to varying degrees.<br />

Consequently, I represent an immigrant’s choice by a mixture of two<br />

choices, the choice of individual i in group 1 <strong>and</strong> that of individual i in group 2. Group 1 represents all<br />

natives of the same racial group <strong>and</strong> group 2 represents a different group.<br />

(5)<br />

It is not clear how to cleanly define group 2, <strong>and</strong> the following two sections will go through two possibilities.<br />

w i,g1,2 = a i w i,g1 +(1 a i )w i,g2 (6)<br />

Case 1: Group 2 Members Are only Affected by own Characteristics<br />

Let’s assume that g 1 evolves as the baseline model in (3) while members of group 2 are only affected by<br />

their own characteristics. In other words,<br />

After some algebra, we get 26<br />

24 Assumptions on the error terms are discussed in Appendix C.<br />

25 See Blume et al. (2010) for a detailed discussion <strong>and</strong> ways to restore identification.<br />

26 Section C provides an explicit derivation of the model.<br />

w i,g2 = k + cx i + e i (7)<br />

16


w i,g1,2 = p 0 + p 1 x i + a i p 2 ¯x g1 + v i,g1,2 . (8)<br />

where a i measures degree of assimilation. Given previous results, we would expect a to be strongly<br />

negatively correlated with age of immigration.<br />

Econometric Model<br />

From the perspective of econometric evaluation, we see that a i cannot easily be disentangled from p 2 in<br />

equation (8). Hence it makes sense to begin by recovering the p 2 from running the baseline regression on<br />

natives<br />

w i,g1 = p 0 + p 1 x i + p 2 ¯x g1 + v i,g1 (9)<br />

We then estimate the following regression separately by each age of immigration<br />

w i,g1,2 = b 0 + b 1 x i + b 2 ¯x g1 + v i,g1,2 (10)<br />

For each age group we are left with the following condition that can be used for identification:<br />

a j p 2 b 2 j = 0 (11)<br />

where a j is a scalar that varies by age of immigration j. Each regression will be estimated separately<br />

for blacks, Hispanics, Asians, <strong>and</strong> whites. Members of group 1 will be based on unique metropolitan area ⇥<br />

race interactions. Variables in x i include education (high school, some college, college, more than college),<br />

<strong>and</strong> a quadratic in potential experience. ¯x g1 includes the group averages of these variables.<br />

Case 2: Group 2 Members Are Affected by Behavior of All Metropolitan Area Residents<br />

Instead of having hypothetical group 2 members be affected by no one else, we could imagine them being<br />

affected by the behavior of all metropolitan area residents. This implies that these members put the same<br />

weight on members of their own race as members of a different race.<br />

Let’s assume that both, g 1 <strong>and</strong> g 2 , evolve as the baseline model in (3) In other words,<br />

After some algebra, we get 27<br />

27 Section C provides an explicit derivation of the model.<br />

w i,g j<br />

= p 0 + p 1 x i + p 2 ¯x g j<br />

+ v i,g j<br />

, j = 1, 2 (12)<br />

17


w i,g1,2 = p 0 + p 1 x i + a i p 2 ¯x g1 +(1 a i )p 2 ¯x g2 + v i,g1,2 . (13)<br />

where a i again measures degree of assimilation. Given previous results, we would expect a to be<br />

strongly negatively correlated with age of immigration.<br />

Econometric Model<br />

As before, we recover p 2 from running the baseline regression on natives 28<br />

w i,g1 = p 0 + p 1 x i + p 2 ¯x g1 + v i,g1 (14)<br />

We then estimate the following regression separately by each age of immigration<br />

w i,g1,2 = b 0 + b 1 x i + b 2 ¯x g1 + b 3 ¯x g2 + v i,g1,2 (15)<br />

For each age of immigration group we are left with the following two conditions that can be used for<br />

identification:<br />

a j p 2 b 2 j = 0 (16)<br />

(1 a j )p 2 b 3 j = 0 (17)<br />

where a j is a scalar that varies by age of immigration. Each regression will be estimated separately<br />

for blacks, Hispanics, Asians, <strong>and</strong> whites. The definition of group 1 members remains the same. Members<br />

of group 2 will be based solely on metropolitan area. Each immigrant will belong to one of both groups<br />

<strong>and</strong> the weights on both groups depend on age of immigration. As before, variables in x i include education<br />

(high school, some college, college, more than college), <strong>and</strong> a quadratic in potential experience. ¯x g1 <strong>and</strong> ¯x g2<br />

includes the group averages of these variables.<br />

7.2 Estimation<br />

Case 1: Group 2 Members Are only Affected by own Characteristics<br />

From (11) we see that a j is overidentified as p 2 <strong>and</strong> b 2 j are vectors <strong>and</strong> a j is a scalar. a j is recovered by<br />

running a weighted regression of b 2 j on p 2 . The regression is run without a constant <strong>and</strong> the weights are the<br />

absolute value of the t-statistics of the parameters contained in b 2 j .<br />

28 Individuals with less than 100 peers in their metropolitan area were dropped in all regressions.<br />

18


Figure 14 <strong>and</strong> 15 show the estimated alphas for each age of immigration. As there is some noise in alpha,<br />

the red line displays the locally weighted regression of alpha on age of immigration. Panel A <strong>and</strong> B provide<br />

the linear approximation of this regression for men <strong>and</strong> women, respectively. 29<br />

For men two things are apparent across all racial/ethnic groups. First, the smoothed regression line of<br />

a lies in between 0 <strong>and</strong> 1, which is in line with the original interpretation of an assimilation parameter or<br />

weight on native characteristics. Second, the smoothed regression is generally downward sloping with a<br />

decreasing with age of immigration. Neither of the two hold consistently for women, suggesting that the<br />

model of social interactions in terms of labor force participation fits men’s behavior better than women’s.<br />

This seems plausible since woman’s labor force participation is more likely to be complicated by decisions<br />

involving child-bearing <strong>and</strong> raising.<br />

The linear approximation of the relation between age of immigration <strong>and</strong> a yields that black <strong>and</strong> Hispanic<br />

men have the greatest negative gradient between a <strong>and</strong> age of immigration (Figure 16a <strong>and</strong> Table 11).<br />

If we interpret a as a parameter ranging from 0 to 1, increasing age of immigration by one year, decreases<br />

the estimated a by .7 percentage points for blacks <strong>and</strong> .78 for Hispanics. This gradient is .57, <strong>and</strong> .29 percentage<br />

points for Asian, <strong>and</strong> white men, respectively. Considering the small unit (one year), these estimates<br />

are very large. As Figure 14 shows, this parameter reaches from close to .4 for blacks who immigrate as<br />

young children to close to 0 for blacks who immigrate at 50.<br />

Case 2: Group 2 Members Are Affected by Behavior of All Metropolitan Area Residents<br />

Similar to Case 1, a j is overidentified as p 2 , b 2 j , <strong>and</strong> b 3 j are vectors <strong>and</strong> a j is a scalar. Instead of 6, we now<br />

have 12 identifying equations. a j is recovered by running a weighted regression of b 2 j on p 2 . The regression<br />

is run without a constant <strong>and</strong> the weights again are the absolute value of the t-statistics of the parameters<br />

contained in b 2 j .<br />

Figure 17 <strong>and</strong> 18 show the alphas by age of immigration. As before, the red line displays the locally<br />

weighted regression of alpha on age of immigration. For men, the smoothed regression line again lies in<br />

between 0 <strong>and</strong> 1, <strong>and</strong> is generally downward sloping. The linear approximation of the negative gradient,<br />

however, is significantly smaller for all races than in the case 1 (Figure 19a <strong>and</strong> Table 12). For black men<br />

it drops by .31 percentage points to .39. For Hispanic, Asian, <strong>and</strong> white men it drops by .65, .43, <strong>and</strong> .12<br />

percentage points, respectively. Note that black men are the only group whose alpha age of immigration<br />

gradient is highly significant in both specifications.<br />

29 This estimation is using as backed out of previous regressions. The variables in those regressions were themselves coefficients in<br />

previous regressions. Hence the st<strong>and</strong>ard errors need to be adjusted in a non-trivial way. Bootstrapped errors using 500 iterations are<br />

displayed in Table 11 <strong>and</strong> 12.<br />

19


8 Conclusion<br />

This paper adds to the existing literature on three dimensions. First, it lays out the fact that black immigrants<br />

have become a large part of the black population in the last decades. Second, it demonstrates that the<br />

characteristics of immigrant blacks are very different from those of native blacks. Third, it determines how<br />

much immigrants blacks converge to native blacks across <strong>and</strong> within a generation. To put these patterns into<br />

perspective, they are compared to those of other races/ethnicities.<br />

The share of black immigrants among the black population in the US has increased from 1% in the<br />

1970s to 11% in 2011. <strong>Black</strong> immigrant males’ earnings <strong>and</strong> wages are higher than those of native blacks<br />

but the premium is small once we condition on being employed. Employment, education, incarceration,<br />

<strong>and</strong> marriage outcomes confirm that we are dealing with two completely different subsets of the population.<br />

<strong>Black</strong> immigrants are much more likely than native blacks to be employed, married, highly educated <strong>and</strong> not<br />

incarcerated.<br />

In summary, first generation black immigrants undoubtedly have better labor market outcomes than black<br />

natives. They directly pass on some characteristics such as high human capital investments to the next generation.<br />

The transmission of labor force attachment seems to be weaker, suggesting that the second generation<br />

is converging to natives. <strong>Black</strong> immigrants do not only converge to black natives across generations but<br />

also within a generation. For Asians <strong>and</strong> Hispanics, earnings premia decrease monotonically with age of<br />

immigration. For blacks, the earnings-age of immigration profile is upward sloping for those immigrating<br />

before the age of 15. <strong>Convergence</strong> across generations is mostly driven by low-educated second generation<br />

blacks that drop out of the labor force in greater numbers than low-educated first generation immigrants do.<br />

Similarly, convergence within a generation is driven by the fact that black first generation immigrants who<br />

arrive at an early age have a weaker labor force attachment than immigrants who arrive in the US when they<br />

are older. A social interactions model with an assimilation parameter that varies by age of immigration helps<br />

explain this phenomenon for men. When making their labor force participation decision, male immigrants<br />

generally place more weight on the characteristics of natives the earlier they immigrate.<br />

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Figures <strong>and</strong> Tables<br />

Figure 1: <strong>Black</strong> <strong>Immigrants</strong> as Share of <strong>Black</strong> US Population (by Origin)<br />

0 .02 .04 .06 .08 .1<br />

1940 1950 1960 1970 1980 1990 2000 2010<br />

Census year<br />

Africa<br />

South America<br />

All Origins<br />

Source: IPUMS− Census <strong>and</strong> ACS with probability weights<br />

West Indies<br />

Other<br />

25


Figure 2: Race Premia/Penalties for Men (including 2001-2003)<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to white native men. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

Figure 3: Race Premia/Penalties for Women (including 2001-2003)<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.2 −.1 0 .1 .2<br />

−.2 −.1 0 .1 .2<br />

−.2 −.1 0 .1 .2<br />

1990 1995 2000 2005 2010<br />

Census year<br />

1990 1995 2000 2005 2010<br />

Census year<br />

1990 1995 2000 2005 2010<br />

Census year<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to white native women. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

26


Figure 4: Race Premia/Penalties for Men<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.4 −.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. Individuals<br />

are restricted to 21-65 year olds. Earnings premia by race are compared to white native men. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

Figure 5: Race Premia/Penalties for Women (Log Earnings)<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.2 −.1 0 .1 .2<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.2 −.1 0 .1 .2<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.2 −.1 0 .1 .2<br />

1990 1995 2000 2005 2010<br />

Census year<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to white native women. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

27


Figure 6: Earnings Premium, by Age of Immigration (Log Earnings)<br />

(a) Men<br />

−.3 −.2 −.1 0 .1 .2<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Women<br />

−.4 −.3 −.2 −.1 0 .1<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been in<br />

the US more than 10 years. Earnings premia are compared to natives of the same race. All regressions control for education, potential<br />

experience, time spent in the US, state <strong>and</strong> year fixed effects.<br />

28


Figure 7: Earnings Premium by Age of Immigration for Low-Educated <strong>Immigrants</strong> (Log Earnings)<br />

(a) Men<br />

−.4 −.2 0 .2 .4<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Women<br />

−.4 −.3 −.2 −.1 0 .1<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been in<br />

the US more than 10 years. Earnings premia are compared to natives of the same race. All regressions control for education, potential<br />

experience, time spent in the US, state <strong>and</strong> year fixed effects. The sample is restricted to individuals with a high school degree or less.<br />

29


Figure 8: Earnings Premia by Age of Immigration & Employment Status (Log Earnings)<br />

(a) Employed Men<br />

(b) Employed Women<br />

−.4 −.2 0 .2<br />

−.5 −.4 −.3 −.2 −.1 0<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(c) Unemployed Men<br />

(d) Unemployed Women<br />

−.2 0 .2 .4 .6<br />

−.4 −.2 0 .2 .4<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been in<br />

the US more than 10 years. Earnings premia are compared to natives of the same race. All regressions control for education, potential<br />

experience, time spent in the US, state <strong>and</strong> year fixed effects. The sample split into employed individuals in (a) <strong>and</strong> (b) <strong>and</strong> unemployed<br />

individuals in (c) <strong>and</strong> (d).<br />

30


Figure 9: Earnings Premium by Age of Immigration, Origin, <strong>and</strong> Refugee Status, English Language Status<br />

(Log Earnings)<br />

(a) Men by Origin<br />

(b) Women by Origin<br />

−.5 0 .5 1<br />

−.5 0 .5 1<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong> African<br />

Hispanic<br />

White<br />

<strong>Black</strong> Caribbean<br />

Asian<br />

<strong>Black</strong> African<br />

Hispanic<br />

White<br />

<strong>Black</strong> Caribbean<br />

Asian<br />

(c) Men by Refugee Status<br />

(d) Women by Refugee Status<br />

−.4 −.2 0 .2 .4 .6<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

−1.5 −1 −.5 0 .5<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong> Refugee<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−Refugee<br />

Asian<br />

<strong>Black</strong> Refugee<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−Refugee<br />

Asian<br />

(e) Men by English Language Status<br />

(f) Women by English Language Status<br />

−.3 −.2 −.1 0 .1 .2<br />

−.8 −.6 −.4 −.2 0<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong> English<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−English<br />

Asian<br />

<strong>Black</strong> English<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−English<br />

Asian<br />

Note: The sample consists of 21-65 year olds in the 2000 census31<br />

<strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been in<br />

the US more than 10 years. Earnings premia are compared to natives of the same race. All regressions control for education, potential<br />

experience, time spent in the US, state <strong>and</strong> year fixed effects. In panels a) <strong>and</strong> b) blacks are split into those from African <strong>and</strong> Caribbean<br />

countries. <strong>Black</strong>s with other origins are not not plotted. In panels c) <strong>and</strong> d) blacks are split into those with refugee status <strong>and</strong> those<br />

without. In panels e) <strong>and</strong> f) blacks are split into those that come from countries that list English as an official language <strong>and</strong> those who<br />

do not.


Figure 10: Labor Force Participation Probability Premium by Age of Immigration<br />

(a) Men<br />

−.1 0 .1 .2 .3<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Women<br />

−.1 0 .1 .2<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who<br />

have been in the US more than 10 years. Labor Force Participation premia are compared to natives of the same race. All regressions<br />

control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects.<br />

32


Figure 11: Labor Force Participation Probability Premium for Low-Educated <strong>Immigrants</strong> by Age of Immigration<br />

(a) Men<br />

−.1 0 .1 .2 .3<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Women<br />

−.2 −.1 0 .1 .2 .3<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who<br />

have been in the US more than 10 years. Labor Force Participation premia are compared to natives of the same race. All regressions<br />

control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The sample is restricted to individuals<br />

with a high school degree or less. 33


Figure 12: Labor Force Participation Probability Premium by Refugee Status <strong>and</strong> Age of Immigration<br />

(a) Men<br />

−.1 −.05 0 .05 .1 .15<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong> Refugee<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−Refugee<br />

Asian<br />

(b) Women<br />

−.1 −.05 0 .05 .1 .15<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong> Refugee<br />

Hispanic<br />

White<br />

<strong>Black</strong> Non−Refugee<br />

Asian<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who<br />

have been in the US more than 10 years. Labor Force Participation premia are compared to natives of the same race. All regressions<br />

control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. <strong>Black</strong>s are split into those with refugee<br />

status <strong>and</strong> those without.<br />

34


Figure 13: Parental Outcomes by Age Premium by Age of Immigration of the Child<br />

(a) Head of Household Log Earnings<br />

−.6 −.4 −.2 0 .2<br />

3 6 9 12 15<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Family Log Income<br />

−.6 −.4 −.2 0 .2 .4<br />

3 6 9 12 15<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 0-15 year olds in the 1990 census. Outcomes are compared to natives of the same race. All regressions<br />

control for time spent in the US.<br />

35


Figure 14: Case 1: Male Assimilation Parameter a by Age of Immigration<br />

<strong>Black</strong>s<br />

Hispanics<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

Outliers are excluded for graphing purposes. They are included in the regression sample of Table 11 as well as in Figure A.7.<br />

36


Figure 15: Case 1: Female Assimilation Parameter a by Age of Immigration<br />

<strong>Black</strong>s<br />

Hispanics<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

Outliers are excluded for graphing purposes. They are included in the regression sample of Table 11 as well as in Figure A.8.<br />

37


Figure 16: Case 1: Assimilation Parameter a by Age of Immigration (Linear Approximation)<br />

(a) Men<br />

alpha<br />

0 .1 .2 .3 .4 .5<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

<strong>Black</strong>s Hispanics Asians<br />

Whites<br />

95% CI<br />

(b) Women<br />

alpha<br />

−.5 0 .5 1<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

<strong>Black</strong>s Hispanics Asians<br />

Whites<br />

95% CI<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of<br />

immigration. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects.<br />

The underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who<br />

have been in the US more than 10 years. Bootstrapped st<strong>and</strong>ard errors using 500 iterations are used to construct the 95% confidence<br />

intervals. 38


Figure 17: Case 2: Male Assimilation Parameter a<br />

<strong>Black</strong>s<br />

Hispanics<br />

−.5 0 .5<br />

alpha<br />

−.5 0 .5<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−.5 0 .5<br />

alpha<br />

−.5 0 .5<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

Outliers are excluded for graphing purposes. They are included in the regression sample of Table 11 as well as in Figure A.9.<br />

39


Figure 18: Case 2: Female Assimilation Parameter a<br />

<strong>Black</strong>s<br />

Hispanics<br />

−.5 0 .5<br />

alpha<br />

−.5 0 .5<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−.5 0 .5<br />

alpha<br />

−.5 0 .5<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

Outliers are excluded for graphing purposes. They are included in the regression sample of Table 11 as well as in Figure A.10.<br />

40


Figure 19: Case 2: Assimilation Parameter a by Age of Immigration (Linear Approximation)<br />

(a) Men<br />

alpha<br />

0 .05 .1 .15 .2<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

<strong>Black</strong>s Hispanics Asians<br />

Whites<br />

95% CI<br />

(b) Women<br />

alpha<br />

−.5 0 .5 1<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

<strong>Black</strong>s Hispanics Asians<br />

Whites<br />

95% CI<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of<br />

immigration. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects.<br />

The underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been<br />

in the US more than 10 years. Bootstrapped st<strong>and</strong>ard errors using 500 iterations are used to construct the 95% confidence intervals.<br />

41


Table 1: Summary Statistics<br />

42<br />

1980 2011<br />

All <strong>Black</strong>s All <strong>Black</strong>s<br />

Whites <strong>Black</strong>s Native <strong>Black</strong>s Immigrant <strong>Black</strong>s Whites <strong>Black</strong>s Native <strong>Black</strong>s Immigrant <strong>Black</strong>s<br />

Panel A: Men<br />

Annual Earnings 16,400 9,460 9,460 9,370 48,500 24,060 23,500 32,900<br />

Employed 0.84 0.71 0.71 0.75 0.76 0.59 0.57 0.76<br />

Cond. Annual Earnings* 18,500 12,100 12,170 11,600 61,700 39,700 39,300 42,100<br />

Age 39.95 37.98 38.05 36.49 43.63 41.13 41.07 41.52<br />

Married (percent) 73.06 54.20 54.01 58.60 57.32 36.27 33.95 53.36<br />

Incarcerated (percent) 0.69 3.29 3.38 1.26 1.30 7.56 8.35 1.74<br />

HS (percent) 35.72 33.46 33.55 31.52 36.59 44.64 46.00 36.64<br />

Some College (percent) 19.54 17.15 16.88 23.19 25.46 26.88 26.82 27.34<br />

College (percent) 11.47 4.60 4.47 7.42 20.96 11.00 9.97 18.63<br />

Grad School (percent) 10.96 3.93 3.67 9.81 11.05 4.87 3.95 11.63<br />

Sample Size 2,490,000 296,000 283,500 12,500 605,300 93,500 83,900 9,570<br />

Panel B: Women<br />

Annual Earnings 5,250 5,230 5,2003 6,160 27,600 22,100 21,500 26,500<br />

Employed 0.56 0.58 0.58 0.67 0.68 0.64 0.63 0.71<br />

Cond. Annual Earnings* 8,580 8,260 8,250 8,480 39,500 33,300 32,900 36,000<br />

Age 40.56 38.49 38.52 37.71 43.99 41.70 41.70 41.69<br />

Married (percent) 71.86 44.87 44.66 50.34 58.99 30.03 28.08 45.15<br />

Incarcerated (percent) 0.29 0.44 0.45 0.18 0.30 0.65 0.72 0.14<br />

HS (percent) 43.96 35.26 35.20 36.83 33.31 37.45 37.89 34.02<br />

Some College (percent) 18.98 17.16 17.00 21.26 27.72 32.22 32.59 29.32<br />

College (percent) 9.19 5.08 5.07 5.43 22.42 13.82 13.32 17.67<br />

Grad School (percent) 5.76 3.71 3.68 4.56 12.06 7.16 6.86 9.44<br />

Sample Size 2,600,000 357,000 346,000 13,400 621,000 102,000 91,500 10,600<br />

The sample consists of 21-65 year olds in the 1980 census <strong>and</strong> the 1-in-100 Public Use Sample of the American Community Survey for 2011.<br />

*Conditional outcomes only refer to employed individuals. High school dropouts are the omitted group in the schooling categories.


Table 2: 2008-2012 Summary Statistics<br />

Whites Native <strong>Black</strong>s Imm. <strong>Black</strong>s 1st Imm. <strong>Black</strong>s 2nd Weighted Imm. <strong>Black</strong>s 2nd<br />

Panel A: Men<br />

Annual Earnings 50,700 28,100 34,100 28,400 36,700<br />

Labo Force 0.84 0.75 0.86 0.79 0.81<br />

Employed 0.78 0.63 0.76 0.66 0.70<br />

Cond. Annual Earnings* 62,000 40,900 42,200 39,700 49,300<br />

Age 43.35 41.14 40.78 32.44 40.78<br />

Married (percent) 62.17 44.72 59.93 25.65 43.23<br />

HS (percent) 30.80 38.35 29.07 22.28 22.36<br />

Some College (percent) 28.75 30.22 29.23 41.32 36.96<br />

College (percent) 22.53 12.90 19.85 22.13 23.48<br />

Grad School (percent) 11.37 5.60 11.11 7.72 11.83<br />

Sample Size 182,300 28,900 3616 797 797<br />

43<br />

Panel B: Women<br />

Annual Earnings 27,900 22,900 24,800 25,500 31,500<br />

Labor Force 0.73 0.72 0.76 0.76 0.77<br />

Employed 0.69 0.64 0.68 0.65 0.68<br />

Cond. Annual Earnings* 38,700 33,500 34,400 36,000 43,600<br />

Age 43.64 41.52 41.36 33.48 41.36<br />

Married (percent) 64.57 39.28 56.96 28.99 37.90<br />

HS (percent) 27.47 31.76 28.10 16.70 17.49<br />

Some College (percent) 31.84 34.57 30.90 40.07 36.82<br />

College (percent) 23.65 15.14 19.74 25.46 24.29<br />

Grad School (percent) 11.85 7.15 8.19 11.15 14.25<br />

Sample Size 191,500 37,200 4102 837 837<br />

The sample consists of 21-65 years olds in the March CPS samples from 2008-2012. Second generation black immigrants in column (5) are<br />

reweighted to have the same age distribution as the first generation in column (3). High School dropouts are the omitted group in the schooling<br />

categories. *Conditional outcomes only refer to employed individuals.


Table 3: Male ’Fading to black’ <strong>Across</strong> Generations (Log Annual Earnings)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.000491 0.0487 ⇤⇤⇤ 0.0356 ⇤⇤ 0.0326 ⇤ 0.0266 ⇤ 0.0119<br />

(0.0137) (0.0165) (0.0181) (0.0181) (0.0160) (0.0153)<br />

Second Generation 0.0292 0.0283 0.0184 0.0179 0.0272 0.0485<br />

(0.0334) (0.0334) (0.0340) (0.0341) (0.0328) (0.0314)<br />

<strong>Immigrants</strong>


Table 4: Female ’Fading to black’ <strong>Across</strong> Generations (Log Annual Earnings)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.0549 ⇤⇤⇤ 0.118 ⇤⇤⇤ 0.0519 ⇤⇤⇤ 0.0476 ⇤⇤⇤ 0.0933 ⇤⇤⇤ 0.0750 ⇤⇤⇤<br />

(0.0130) (0.0148) (0.0164) (0.0164) (0.0145) (0.0143)<br />

Second Generation 0.0692 ⇤⇤ 0.0674 ⇤⇤ 0.0120 0.0115 0.0702 ⇤⇤ 0.0652 ⇤⇤<br />

(0.0287) (0.0287) (0.0290) (0.0290) (0.0276) (0.0272)<br />

<strong>Immigrants</strong>


Table 6: Female Fading <strong>Across</strong> Generations (Log Annual Earnings)<br />

(1) (2) (3) (4)<br />

<strong>Black</strong>s Hispanics Asians Whites<br />

First Generation 0.118 ⇤⇤⇤ -0.0604 ⇤⇤⇤ -0.0239 0.0247 ⇤⇤<br />

(0.0148) (0.00989) (0.0220) (0.0109)<br />

Second Generation 0.0674 ⇤⇤ 0.0600 ⇤⇤⇤ 0.0350 0.0586 ⇤⇤⇤<br />

(0.0287) (0.0112) (0.0282) (0.00864)<br />

Observations 77881 78878 26265 489589<br />

Adjusted R 2 0.177 0.138 0.145 0.107<br />

St<strong>and</strong>ard errors in parentheses ⇤ p < 0.10, ⇤⇤ p < 0.05, ⇤⇤⇤ p < 0.01<br />

All regressions control for schooling, a quadratic in potential experience, <strong>and</strong> year fixed effects.<br />

The sample consists of 21-65 years olds in the March CPS samples from 1994-2012.<br />

<strong>Immigrants</strong> are restricted to have been in the US more than 10 year.<br />

Table 7: Male ’Fading to black’ <strong>Across</strong> Generations (Labor Force Probability)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.0806 ⇤⇤⇤ 0.0945 ⇤⇤⇤ 0.105 ⇤⇤⇤ 0.105 ⇤⇤⇤ 0.161 ⇤⇤⇤ 0.0939 ⇤⇤⇤<br />

(0.00474) (0.00566) (0.00613) (0.00614) (0.00987) (0.00660)<br />

Second Generation -0.0196 ⇤ -0.0226 ⇤ -0.00908 -0.00940 -0.0218 -0.0241 ⇤⇤<br />

(0.0119) (0.0119) (0.0120) (0.0120) (0.0228) (0.0119)<br />

<strong>Immigrants</strong>


Table 8: Female ’Fading to black’ <strong>Across</strong> Generations (Labor Force Probability)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.0303 ⇤⇤⇤ 0.0588 ⇤⇤⇤ 0.0726 ⇤⇤⇤ 0.0724 ⇤⇤⇤ 0.112 ⇤⇤⇤ 0.0687 ⇤⇤⇤<br />

(0.00493) (0.00565) (0.00610) (0.00611) (0.00949) (0.00654)<br />

Second Generation -0.0242 ⇤⇤ -0.0268 ⇤⇤⇤ -0.0143 -0.0146 -0.00787 -0.0277 ⇤⇤⇤<br />

(0.0103) (0.0103) (0.0103) (0.0104) (0.0216) (0.0103)<br />

<strong>Immigrants</strong>


Table 10: Female <strong>Convergence</strong> <strong>Across</strong> Generations (Labor Force Participation for Citizens)<br />

(1) (2) (3) (4)<br />

<strong>Black</strong>s Hispanics Asians Whites<br />

First Generation 0.0687 ⇤⇤⇤ 0.0145 ⇤⇤⇤ -0.000431 -0.0244 ⇤⇤⇤<br />

(0.00654) (0.00398) (0.00768) (0.00401)<br />

Second Generation -0.0277 ⇤⇤⇤ 0.0149 ⇤⇤⇤ -0.0107 -0.00597 ⇤⇤<br />

(0.0103) (0.00392) (0.00976) (0.00283)<br />

Observations 111217 94369 31459 662135<br />

Adjusted R 2 0.115 0.095 0.070 0.082<br />

St<strong>and</strong>ard errors in parentheses ⇤ p < 0.10, ⇤⇤ p < 0.05, ⇤⇤⇤ p < 0.01<br />

All regressions for schooling, a quadratic in potential experience, <strong>and</strong> year fixed effects.<br />

The sample consists of 21-65 years olds in the March CPS samples from 1994-2012.<br />

<strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

Table 11: Case 1: Assimilation Parameter Alpha<br />

(1) (2) (3) (4)<br />

<strong>Black</strong>s Hispanics Asians Whites<br />

Panel A: Men<br />

Age of Immigration -0.00702 ⇤⇤⇤ -0.00786 ⇤⇤⇤ -0.00577 ⇤⇤ -0.00292 ⇤<br />

(0.00272) (0.00237) (0.00292) (0.00157)<br />

Constant 0.540 ⇤⇤⇤ 0.361 ⇤⇤⇤ 0.234 ⇤⇤ 0.227 ⇤⇤⇤<br />

(0.0972) (0.00841) (0.117) (0.0534)<br />

Panel B: Women<br />

Age of Immigration -0.00171 ⇤ -0.00393 ⇤⇤ -0.0155 ⇤⇤⇤ 0.0119 ⇤⇤<br />

(0.000915) (0.00170) (0.00785) (0.00519)<br />

Constant 0.113 ⇤⇤⇤ 0.163 ⇤⇤⇤ 0.859 ⇤⇤⇤ -0.350 ⇤<br />

(0.0337) (0.0623) (0.289) (0.180)<br />

Observations 50 50 50 50<br />

as are backed out of equation (11) <strong>and</strong> then regressed on age of immigration.<br />

Bootstrapped st<strong>and</strong>ard errors using 500 iterations are in parentheses<br />

⇤ p < 0.10, ⇤⇤ p < 0.05, ⇤⇤⇤ p < 0.01<br />

48


Table 12: Case 2: Assimilation Parameter Alpha<br />

(1) (2) (3) (4)<br />

<strong>Black</strong>s Hispanics Asians Whites<br />

Panel A: Men<br />

Age of Immigration -0.00388 ⇤⇤⇤ -0.00138 -0.00148 -0.00168 ⇤⇤⇤<br />

(0.00112) (0.000897) (0.00145) (0.000454)<br />

Constant 0.182 ⇤⇤⇤ 0.0740 ⇤⇤ 0.109 ⇤⇤ 0.0740 ⇤⇤⇤<br />

(0.0461) (0.0351) (0.0817) (0.0153)<br />

Panel B: Women<br />

Age of Immigration -0.000142 0.00147 ⇤⇤ -0.00119 0.00296 ⇤⇤⇤<br />

(0.000385) (0.000618) (0.00264) (0.000944)<br />

Constant 0.0145 -0.0523 ⇤⇤ 0.163 ⇤ -0.0616 ⇤<br />

(0.0128) (0.0218) (0.0956) (0.0319)<br />

Observations 50 50 50 50<br />

as are backed out of equation (16) <strong>and</strong> (17) <strong>and</strong> then regressed on age of immigration.<br />

Bootstrapped st<strong>and</strong>ard errors using 500 iterations are in parentheses<br />

⇤ p < 0.10, ⇤⇤ p < 0.05, ⇤⇤⇤ p < 0.01<br />

A Supplemental Figures <strong>and</strong> Tables<br />

Figure A.1: Race Premia/Penalties for Employed Men<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

−.3 −.2 −.1 0 .1<br />

1990 1995 2000 2005 2010<br />

Census year<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to employed white native men. All regressions control for<br />

education, potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time<br />

spent in the US.<br />

49


Figure A.2: Race Premia/Penalties for Employed Women<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.2 −.1 0 .1 .2<br />

−.2 −.1 0 .1 .2<br />

−.2 −.1 0 .1 .2<br />

1970 1980 1990 2000 2010<br />

Census year<br />

1994 1999 2004 2009<br />

Census year<br />

1970 1980 1990 2000 2010<br />

Census year<br />

<strong>Black</strong><br />

Hispanic<br />

Asian<br />

Note: The premia/penalties are compared to employed white natives.<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to employed white native women. All regressions control<br />

for education, potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for<br />

time spent in the US.<br />

Figure A.3: Race Premia/Penalties for Men (from 1970 onwards)<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.4 −.2 0 .2<br />

−.4 −.2 0 .2<br />

−.4 −.2 0 .2<br />

1970 1980 1990 2000 2010<br />

Census year<br />

1994 1999 2004 2009<br />

Census year<br />

1970 1980 1990 2000 2010<br />

Census year<br />

<strong>Black</strong><br />

Hispanic<br />

Asian<br />

Note: The premia/penalties are compared to employed white natives.<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to white native men. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

50


Figure A.4: Race Premia/Penalties for Women (from 1970 onwards)<br />

First Generation<br />

Second Generation<br />

<strong>Natives</strong><br />

−.2 −.1 0 .1 .2<br />

1970 1980 1990 2000 2010<br />

Census year<br />

−.2 −.1 0 .1 .2<br />

1994 1999 2004 2009<br />

Census year<br />

−.2 −.1 0 .1 .2<br />

1970 1980 1990 2000 2010<br />

Census year<br />

<strong>Black</strong><br />

Hispanic<br />

Asian<br />

Note: The premia/penalties are compared to employed white natives.<br />

Note: Panel 1 <strong>and</strong> 3 use the 1990 <strong>and</strong> 2000 census <strong>and</strong> ACS data from 2001-2011. Panel 2 uses CPS data from 1994 to 2012. The<br />

sample consists of 21-65 year olds. Earnings premia by race are compared to white native women. All regressions control for education,<br />

potential experience, <strong>and</strong> state fixed effects. In addition, the regression for first generation immigrants also controls for time spent in<br />

the US.<br />

51


Figure A.5: Earnings Premia by Age of Immigration for High-Educated <strong>Immigrants</strong> (Log Earnings)<br />

(a) Men<br />

−.6 −.4 −.2 0 .2<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Women<br />

−.6 −.4 −.2 0 .2<br />

5 10 15 20 25 30 35 40<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to have been in<br />

the US more than 10 years. Earnings premia are compared to natives of the same race. All regressions control for education, potential<br />

experience, time spent in the US, state <strong>and</strong> year fixed effects. The sample is restricted to individuals with some college or more.<br />

52


Figure A.6: Parental Outcomes by Age Premium by Age of Immigration of the Child (No Years in the US<br />

Control)<br />

(a) Head of Household Log Earnings<br />

−.6 −.4 −.2 0 .2<br />

3 6 9 12 15<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

(b) Family Log Income<br />

−.6 −.4 −.2 0 .2 .4<br />

3 6 9 12 15<br />

Age of Immigration<br />

<strong>Black</strong><br />

Asian<br />

Hispanic<br />

White<br />

Note: The sample consists of 0-15 year olds in the 1990 census. Outcomes are compared to natives of the same race. with no controls.<br />

53


Figure A.7: Case 1: Male Assimilation Parameter a with Outliers<br />

<strong>Black</strong>s<br />

Hispanics<br />

−.5 0 .5 1 1.5 2<br />

alpha<br />

−.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

54


Figure A.8: Case 1: Female Assimilation Parameter a with Outliers<br />

<strong>Black</strong>s<br />

Hispanics<br />

−.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−2 0 2 4 6 8<br />

alpha<br />

−1.5−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

55


Figure A.9: Case 2: Male Assimilation Parameter a with Outliers<br />

<strong>Black</strong>s<br />

Hispanics<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−1 −.5 0 .5 1<br />

alpha<br />

−1 −.5 0 .5 1<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

56


Figure A.10: Case 2: Female Assimilation Parameter a with Outliers<br />

<strong>Black</strong>s<br />

Hispanics<br />

−1 0 1 2<br />

alpha<br />

−1 0 1 2<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

Asians<br />

Whites<br />

−1 0 1 2<br />

alpha<br />

−1 0 1 2<br />

alpha<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

5 10 15 20 25 30 35 40 45 50<br />

Age of Immigration<br />

b<strong>and</strong>width = .8<br />

alpha lowess: alpha<br />

Note:a parameters are backed out by comparing labor force participation parameters for natives <strong>and</strong> immigrants by different ages of immigration. The locally weighted<br />

regression line is based on a 0.8 b<strong>and</strong>width. The underlying regressions control for education, potential experience, time spent in the US, state <strong>and</strong> year fixed effects. The<br />

underlying sample consists of 21-65 year olds in the 2000 census <strong>and</strong> the 2001-2011 ACS. <strong>Immigrants</strong> are restricted to citizens who have been in the US more than 10 years.<br />

57


Table A.1: Summary Statistics by Origin<br />

1980 2011<br />

West Indians Africans South Americans Other Origin West Indians Africans South Americans Other Origin<br />

Panel A: Men<br />

Annual Earnings 10,400 7,010 10,700 8,470 31,300 33,800 38,500 34,000<br />

Employed 0.81 0.57 0.82 0.72 0.74 0.80 0.78 0.68<br />

Cond. Annual Earnings* 11,900 10,900 12,400 10,900 41,100 41,280 48,400 48,800<br />

Age 38.02 30.53 36.52 36.71 43.47 39.90 43.44 38.38<br />

Married (percent) 65.75 50.73 67.93 47.61 54.52 54.89 58.01 39.20<br />

Jail (percent) 0.40 0.27 0.57 3.54 1.79 1.05 0.96 4.80<br />

HS (percent) 35.52 11.14 33.40 34.38 42.92 24.40 45.58 34.65<br />

Some College (percent) 19.66 43.10 26.19 18.90 25.86 28.61 21.00 31.72<br />

College (percent) 6.41 15.47 7.97 4.99 14.33 23.84 17.83 17.02<br />

Grad School (percent) 7.02 26.93 13.09 5.56 6.52 18.68 5.83 8.06<br />

Sample Size 6,700 1,850 530 350 4,580 3,630 410 950<br />

58<br />

Panel B: Women<br />

Annual Earnings 6,720 3,970 7,180 5,230 27,400 24,300 27,900 28,000<br />

Employed 0.72 0.47 0.72 0.61 0.72 0.69 0.70 0.72<br />

Cond. Annual Earnings* 8,750 7,170 9,280 7,890 36,500 34,000 39,300 37,700<br />

Age 38.41 29.87 38.31 37.62 44.03 38.48 44.11 38.59<br />

Married (percent) 51.78 63.81 51.67 44.92 42.29 52.70 47.18 34.53<br />

Jail (percent) 0.06 0.00 0.00 0.47 0.18 0.11 0.00 0.11<br />

HS (percent) 38.14 22.93 40.91 36.08 37.20 30.77 38.68 25.37<br />

Some College (percent) 20.94 35.36 20.00 19.59 29.03 29.10 26.79 32.79<br />

College (percent) 5.12 15.06 5.61 4.31 14.35 21.47 18.52 22.64<br />

Grad School (percent) 4.37 13.26 6.52 3.06 8.65 9.84 6.77 13.70<br />

Sample Size 7,930 720 660 48,000 5,900 3,200 528 1,030<br />

The sample consists of 21-65 year olds in the 1980 census <strong>and</strong> the 1-in-100 Public Use Sample of the American Community Survey for 2011.<br />

Weights are used to reflect sampling. *Conditional outcomes only refer to employed individuals.


Table A.2: Male ’Fading to black’ <strong>Across</strong> Generations (Employment Probability Conditional on Labor Force<br />

Participation)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.0284 ⇤⇤⇤ 0.0228 ⇤⇤⇤ 0.0291 ⇤⇤⇤ 0.0288 ⇤⇤⇤ 0.0404 ⇤⇤⇤ 0.0294 ⇤⇤⇤<br />

(0.00397) (0.00470) (0.00521) (0.00522) (0.00793) (0.00529)<br />

Second Generation -0.00903 -0.00845 -0.000731 -0.000992 0.00724 -0.00818<br />

(0.0114) (0.0114) (0.0115) (0.0115) (0.0224) (0.0114)<br />

<strong>Immigrants</strong>


Table A.3: Female ’Fading to black’ <strong>Across</strong> Generations (Employment Probability Conditional on Labor<br />

Force Participation)<br />

(1) (2) (3) (4) (5) (6)<br />

First Generation 0.00700 ⇤ 0.0132 ⇤⇤⇤ 0.0138 ⇤⇤⇤ 0.0139 ⇤⇤⇤ 0.0273 ⇤⇤⇤ 0.0134 ⇤⇤⇤<br />

(0.00365) (0.00398) (0.00439) (0.00439) (0.00700) (0.00454)<br />

Second Generation -0.00200 -0.00215 -0.000902 -0.00121 -0.0103 -0.00209<br />

(0.00846) (0.00846) (0.00857) (0.00859) (0.0221) (0.00846)<br />

<strong>Immigrants</strong>


Table A.5: Female Fading <strong>Across</strong> Generations (Employment Probability Conditional on Labor Force Participation<br />

for Citizens)<br />

(1) (2) (3) (4)<br />

<strong>Black</strong>s Hispanics Asians Whites<br />

First Generation 0.0134 ⇤⇤⇤ 0.00173 -0.00392 -0.00692 ⇤⇤⇤<br />

(0.00454) (0.00252) (0.00436) (0.00225)<br />

Second Generation -0.00209 -0.00681 ⇤⇤ -0.00985 ⇤ -0.00400 ⇤⇤⇤<br />

(0.00846) (0.00278) (0.00594) (0.00151)<br />

Observations 79978 65818 23829 493471<br />

Adjusted R 2 0.040 0.023 0.010 0.013<br />

St<strong>and</strong>ard errors in parentheses ⇤ p < 0.10, ⇤⇤ p < 0.05, ⇤⇤⇤ p < 0.01<br />

All regressions for schooling, a quadratic in potential experience, <strong>and</strong> year fixed effects.<br />

The sample consists of 21-65 years olds in the March CPS samples from 1994-2012.<br />

<strong>Immigrants</strong> are restricted to have been in the US more than 10 year.<br />

B Data Description<br />

Data Limitations<br />

There are some very unfortunate data limitations with the CPS, ACS, <strong>and</strong> census data. The CPS asks respondents<br />

about the birthplace of their parents starting in 1994. In 2012 the sample includes over 200,000<br />

individuals. Roughly 22,700 of the sample identified themselves as non-Hispanic black, 2100 as first generation<br />

immigrant non-Hispanic black, <strong>and</strong> only 1200 as second generation non-Hispanic blacks. If we restrict<br />

our sample to the working age population the number of first <strong>and</strong> second generation members in the sample<br />

drops to 1600 <strong>and</strong> 340 respectively. Substantial black immigration is a very recent phenomenon <strong>and</strong> it accelerated<br />

massively over the past 30 years. Hence many immigrants have not had children that are old enough<br />

to be in the sample. Consequently the sample size is very small for calculating average annual wage, employment<br />

status, <strong>and</strong> educational attainment rates. Furthermore, the CPS coverage does not include military<br />

<strong>and</strong> institutional populations.<br />

The sample size for the ACS is much larger averaging about 3 million addresses per year. It includes<br />

both military <strong>and</strong> institutional populations. Neither the census not the ACS, however, ask respondents about<br />

their parents’ place of birth after 1970 so I can infer very little about second- or later generations from the<br />

ACS <strong>and</strong> census <strong>and</strong> am limited to first generation immigrants. My method is to mostly use the ACS <strong>and</strong><br />

census due to its sample size <strong>and</strong> more inclusive coverage, but infer second generation characteristics from<br />

the CPS.<br />

Besides data limitations there are technical problems with both the CPS <strong>and</strong> the ACS/census. First,<br />

earnings are capped at different values in different years. This biases wage gaps since disproportionately<br />

many whites are high earners. Second, both the CPS <strong>and</strong> ACS oversample certain populations <strong>and</strong> sample<br />

61


weights are necessary. Third, both the CPS <strong>and</strong> ACS/census have started a hot-decking procedure that<br />

imputes earnings <strong>and</strong> other characteristics for individuals who do not report the relevant statistics. Dropping<br />

these observations would delete a disproportionate number of young low-skill blacks <strong>and</strong> cause illusory<br />

convergence (Ch<strong>and</strong>ra 2003), leading to the inclusion of imputed data by most researchers. Bollinger <strong>and</strong><br />

Hirsch (2006) show that this introduces substantial bias due to mismatch in the imputation process.<br />

In this paper, I estimated my results including imputed data. The ACS/census is a much larger data set<br />

than the CPS <strong>and</strong> the bias is smaller.<br />

Census <strong>and</strong> ACS Data<br />

This paper uses data from the decennial censuses from 1970 to 2000. The 1970 sample consist of two<br />

IPUMS self-weighting subsamples: the 1% State sample (5% form) <strong>and</strong> the 1% State sample (15%) form,<br />

which together represent 2% of the population. The 1980, 1990, <strong>and</strong> 2000 samples are 5% Public use<br />

Samples. While the 1980 sample is self-weighting, the 1990 <strong>and</strong> 2000 sample are not <strong>and</strong> weights are used<br />

to return to r<strong>and</strong>om proportions. The 2001-2011 ACS sample represent about .4% of the population in years<br />

2001-2004 <strong>and</strong> 1% thereafter.<br />

Sample Restrictions<br />

• Age: The sample includes individuals aged 21-65 in order to focus on the working-age population.<br />

• Race: Individuals are coded as black, Asian, <strong>and</strong> white if they are non-Hispanic. Hence Hispanics are<br />

comprised of different races in this sample.<br />

• Earnings: In the results presented I exclude persons with negative earnings. Only a very small fraction<br />

of individuals have negative earnings.<br />

Constructed Variables<br />

• Annual Earnings: For the 1990-2000 censuses <strong>and</strong> the ACS annual earnings is available. For the 1970<br />

<strong>and</strong> 1980 census comparable measures are derived by adding business <strong>and</strong> farm income.<br />

• Schooling: High school dropouts are those with less than 12 years of schooling for the 1970 <strong>and</strong><br />

1980 sample <strong>and</strong> those with less than a high school degree in the 1990 to 2011 samples. High school<br />

(College) graduates are those with 12 (16) or more completed years of schooling for the 1970 <strong>and</strong><br />

1980 sample <strong>and</strong> those with a high school (bachelors) degree or higher in the 1990 to 2011 samples.<br />

Graduate school attendants/graduates are those with more than 16 years of schooling for the 1970 <strong>and</strong><br />

1980 sample <strong>and</strong> those with schooling beyond college in the 1990 to 2011 samples. “Some college”<br />

individuals have in between 13 <strong>and</strong> 15 years of schooling for the 1970 <strong>and</strong> 1980 census <strong>and</strong> a high<br />

school but no college degree in the 1990 to 2011 samples.<br />

62


• Labor force participation <strong>and</strong> employment are two important variables in the analysis. Both variables<br />

are coded referring to the individual ’s status in the “previous week”. This does not have to be the same<br />

week for all respondents, since the census or survey was taken over a period of time. In all years, labor<br />

force participants consist of employed <strong>and</strong> unemployed persons. Individuals are considered employed<br />

under three different circumstances:<br />

1. They worked at least one hour for pay or profit during the reference period.<br />

2. They worked at least 15 hours as "unpaid family workers".<br />

3. They had a job from which they were temporarily absent (e.g., because of illness or vacation time).<br />

• Incarceration: To estimate the proportion incarcerated I use the group-quarters identifier included<br />

in the PUMS data. The decennial Census enumerates both the institutionalized as well as the noninstitutionalized<br />

population. See Butcher <strong>and</strong> Piehl (1998) <strong>and</strong> Johnson <strong>and</strong> Raphael (2005) for studies<br />

that also use the group quarter variable to identify the incarcerated.<br />

CPS Data<br />

This paper pools the 2008-2012 March CPS samples. Each sample year includes about 200,000 individuals<br />

from the non-institutionalized population. Weights are included to reflect sampling. Observations with<br />

imputed values are included but dropping them has minimal effects on the results.<br />

Sample Restrictions<br />

• Age: The sample includes individuals aged 21-65 in order to focus on the working-age population.<br />

• Race: Individuals are coded as black, Asian, <strong>and</strong> white if they are non-Hispanic. Hence Hispanics are<br />

comprised of different races in this sample.<br />

• Earnings: In the results presented I excluded persons with negative earnings. Only a very small<br />

fraction of individuals have negative earnings.<br />

Constructed variables<br />

• Annual earnings: Annual earnings include earnings, farm <strong>and</strong> business income.<br />

• Schooling: Data on high school, college, <strong>and</strong> graduate school degrees are available. Individuals with<br />

more than an high school degree <strong>and</strong> less than a college degree fall into the “some college” category.<br />

Individuals with more than a college degree (whether they complete graduate school or not) count as<br />

graduate school attendants/ completers.<br />

• Labor force participation <strong>and</strong> employment are comparable to those in the ACS/census.<br />

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Refugee status<br />

The world fact book provides estimates of refugees <strong>and</strong> internally displaced persons for each country. An<br />

individual was coded as a refugee if he or she immigrated from a country in unrest in a year in which many<br />

refugees fled the country. For more recent years (2000-2013) the Office of Refugee Resettlement has detailed<br />

data on refugee arrival by source country from 2000-2012, which was used to infer refugee status.<br />

C Mathematical Proofs of Section 7<br />

Assumptions on the Errors<br />

Following Blume et al. (2010), we make two st<strong>and</strong>ard assumptions on the error terms:<br />

1. Let’s assume that the expected value of e i is 0, conditional on the information set (x i, ¯x g ,y g ,i 2 g)<br />

8i, gE(e i |x i , ¯x g ,y g , i 2 g)=0<br />

2. Let’s assume that for each i, j,,g, h such that i 6= j or g 6= h<br />

cov(e i e j |x i , ¯x g ,y g ,i 2 g,x j , ¯x h ,y h , j 2 h)=0<br />

Condition (2) rules out conditional variation between errors. Including group memberships eliminates any<br />

link between the identity of the group <strong>and</strong> model errors, which allows groups to be treated as exchangeable.<br />

Model Derivation<br />

The choice of an immigrant in racial group g 1 with immigrant background g 2 is denoted as w i,g1,2 = aw i,g1 +<br />

(1 a)w i,g2 . Assume that g 1 evolves as follows<br />

w i,g1 = k + cx i + d ¯x g1 + Jm e i,g 1<br />

+ e i<br />

Restricting the evolution of choices to be consistent with the model, ignoring the intercept, <strong>and</strong> taking<br />

the limit as the number of group members approaches infinity, we get the following equation<br />

Solving for ¯w g1 , gives us<br />

¯w g1 = c ¯x g1 + d ¯x g1 + ¯ Jw g1 + ē g1 (18)<br />

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Plugging (19) back into (3) gives us<br />

(c + d)<br />

¯w g1 =<br />

1 J ¯x g 1<br />

+ ēg 1<br />

1 J<br />

(19)<br />

or<br />

w i,g1 = k + cx i + d + Jc<br />

1 J ¯x g 1<br />

+ J<br />

1 J ēg 1<br />

+ e i (20)<br />

w i,g1 = p 0 + p 1 x i + p 2 ¯x g1 + n i,g1 (21)<br />

Case 1: Group 2 Members Are only Affected by own Characteristics<br />

Recall that the decision rule of group 2 members in case 1 evolves as follows<br />

Returning to the joint choice probability, we get<br />

w i,g2 = k + cx i + v i,g2 = p 0 + p 1 x i + v i,g2 (22)<br />

Simplifying, this gives us<br />

w i,g1,2 = a i (p 0 + p 1 x i + p 2 ¯x g1 + n i,g1 )+(1 a i )(p 0 + p 1 x i + n i,g2 ) (23)<br />

where a i measures the degree of assimilation.<br />

w i,g1,2 = p 0 + p 1 x i + a i p 2 ¯x g1 + v i,g1,2 (24)<br />

Case 2: Group 2 Members Are Affected by Average Characteristics of Entire Metropolitan<br />

Area<br />

Now, both group 1 <strong>and</strong> group 2 members’ decisions evolve as follows<br />

or<br />

w i,g j<br />

= k + cx i + d ¯x g j<br />

+ Jm e i, j + e i , j = 1, 2<br />

w i,g j<br />

= p 0 + p 1 x i + p 2 ¯x g j<br />

+ v i,g j<br />

, j = 1, 2<br />

Returning to the joint choice probability for immigrants, we get<br />

w i,g1,2 = a i (p 0 + p 1 x i + p 2 ¯x g1 + n i,g1 )+(1 a i )(p 0 + p 1 x i + p 2 ¯x g2 + n i,g2 ) (25)<br />

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Simplifying, this gives us<br />

where a i measures the degree of assimilation.<br />

w i,g1,2 = p 0 + p 1 x i + a i p 2 ¯x g1 +(1 a i )p 2 ¯x g2 + v i,g1,2 (26)<br />

D Welfare Eligibility Requirements for Non-Citizens<br />

The programs discussed here are the Supplementary Security Income (SSI), Supplemental Nutrition Assistance<br />

Program (SNAP), the Temporary Assistance for Needy Families (TANF), Medicaid, <strong>and</strong> State Children’s<br />

Health Insurance Program (SCHIP). When determining welfare eligibility for non-citizens, two broad<br />

criteria are generally taken into account. 30 The most general screen is the “qualified” versus “not qualified”<br />

alien. Qualified immigrants include legal permanent residents (LPRs), refugees, asylees, Cuban/Haitian<br />

entrants, <strong>and</strong> a few smaller categories. Non-qualified immigrants mostly include illegal <strong>and</strong> temporary immigrants.<br />

Non-qualified immigrants are largely ineligible for all except emergency benefits. The second<br />

factor determining eligibly is the date of entry into the United States. Up until 2002, qualified immigrants<br />

who entered after August 22, 1996 were barred from SSI <strong>and</strong> SNAP until they become citizens <strong>and</strong> from<br />

TANF, Medicaid, <strong>and</strong> SCHIP for five years after entry. <strong>Immigrants</strong> who entered before 1996 were eligible<br />

for TANF, Medicaid, SCHIP, <strong>and</strong> SSI but food stamp eligibility remained more restricted. Today, lawful<br />

permanent residents must wait at least five years to be eligible for benefits, but states have the option of providing<br />

them earlier. Refugees <strong>and</strong> asylees are generally eligible for public benefits if they meet the eligibility<br />

criteria.<br />

Camarota (2011, 2012) finds that immigrant-headed households use more Medicaid than native-headed<br />

households with children <strong>and</strong> had higher food assistance, but lower cash assistance. This study, however, did<br />

not adjust for income. In other words, the percent of immigrants receiving benefits is higher in part because<br />

a greater percent of immigrants are low-income, <strong>and</strong> more likely to be eligible for public benefits. Ku <strong>and</strong><br />

Bruen (2013) find that low-income non-citizen children <strong>and</strong> adults (below the 200% poverty line) generally<br />

use Medicaid, SNAP, cash assistance, <strong>and</strong> SSI at a lower rate than comparable low-income native-born<br />

children <strong>and</strong> adults.<br />

30 This discussion draws from Fix <strong>and</strong> Haskins (2002) <strong>and</strong> Ku <strong>and</strong> Bruen (2013).<br />

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