"Much of the contemporary literature on immigrant assimilation has been focused on solving methodological issues in order to properly measure changes in immigrant earnings with time spent in the US. In early work on this topic, Chiswick (1978) found that immigrants in the 1970 Census earned less than natives upon first arrival, but rapidly caught up and were able to overtake natives after spending 15-20 years in the US. A declining earnings gap between immigrants and natives with time spent in the US may reflect immigrants' earnings growth, but may also be driven by declining skill levels of immigrants across arrival cohorts and negatively-selected return migration. By following immigrant arrival cohorts across Census waves, Borjas (1985) documents that around half of the convergence observed in a single cross section can be attributed to declining skills across arrival cohorts. The extent of convergence is smaller yet in panel datasets that follow individual immigrants over time, thereby controlling for selective return migration (Lubotsky, 2007)."
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Immigration to the United States
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