Assimilation

Assimilation, sometimes known as integration or incorporation, is the process by which the characteristics of members of immigrant groups and host societies come to resemble one another. That process, which has both economic and sociocultural dimensions, begins with the immigrant generation and continues through the second generation and beyond.

Second Generation

The second generation are the U.S. or the U.K. born children of immigrants.

Third Generation

The third generation are the children of the parents who were born in the U.S. or the U.K.

Self-selection

Self-selection suggests that only the most able and highly motivated have the incentive to migrate.

Selective out-migration

Selective out-migration is a possible explanation for "dis-assimilation" in a labour market, suggested by Bell in 1997. A situation where immigrant earnings are higher than native's, on entry, but decline relatively over their working lives could be the result of higher quality immigrants re-migrating (back to their home country, for example). Selective out migration suggests that the reason immigrants experience declining earnings profiles, relative to natives, is because the higher quality immigrants (responsible for the initial wage premium on entry) eventually leave the work force (re-migrate), the result of which is an average decline in earnings for immigrants, over their working lives.

Whilst data from the UK on re-migration is far from detailed, Rendall and Ball (2004) find that most re-migration is by immigrants from developed countries. It is therefore plausible that these are higher quality immigrants with higher paid jobs than those from less developed countries.

Dustmann and Weiss (2007), in a paper which argues that the majority of immigration to the UK is temporary rather than permanent, notes that because both immigration and out migration involve selection bias, it is likely that conclusions about the economic performance of entry cohorts is misleading.

More information on selective immigration and out migration can be found here:
http://www.econ.ucl.ac.uk/cream/pages/CDP/CDP_02_07.pdf

Dis-assimilation

Dis-assimilation can be explained by first looking at the textbook model of assimilation, in which immigrants enter a domestic labour market at an initial disadvantage. Over time, this disadvantage is eroded until immigrants reach a similar level as natives. However, evidence from the UK literature suggests an alternative model; one of dis-assimilation. This is when immigrants enter the labour market with an initial wage/employment premium, compared with natives. Over time this advantage is reduced until it reaches the levels of natives.

Self-selection is a possible explanation for this as it produces a higher quality of immigrant cohort. There has been evidence of this happening in developed economies such as the UK.

Cohort analysis

A cohort study or panel study is a form of longitudinal study where observations of a given cohort take place through life, or through specific periods.

Decennial census

The formal counting of the population of the United States that occurs every ten years at the beginning of a decade.

Pre-Labour Market Assimilation

Kossoudji (1989) makes the important distinction between labour market assimilation and pre-labour market assimilation. For the education entrants (See Clark and Lindley, 2009), assimilation consists of labour market assimilation (time spent after leaving full-time education) and pre-labour market assimilation (in the UK education system).

Age-earnings Profile

The wage path of an individual over their life cycle.

Human Capital

A unique set of abilities and acquired skills which each individual brings to the labour market.