0020Z The Americanization of Immigrant Children from Mexico Thomas DeLeire University of Chicago Michigan State University Brian Jacob Harvard University Aitor Lacuesta University of Chicago Robert LaLonde University of Chicago and NBER July 2004 Abstract A sizeable literature in the social sciences argues that experiences during childhood can have large impacts on subsequent development and well-being as an adult. A largely unrelated literature on the economics of immigration has sought to determine whether and how long it will take immigrants to “catch-up” when they arrive in a new country and whether they acquire “host” country-specific skills. In this paper, we are interested in whether and how the assimilation process differs between immigrants who arrive during early childhood and those who arrive at later ages. We find in samples of Mexican immigrants who migrated as young children that it may not matter whether she arrives as an infant or in early primary school. As adults, these immigrants have wages and other socio-economic outcomes that are comparable to or exceed those of natives with Mexican-American ancestry. Beyond age 10, however, it is clearer that the older are children when they immigrate to the United States, the lower are their earnings as adults and the more likely they exhibit social characteristics similar to immigrants who arrive as adults. A reason for the poorer performance of immigrants who arrive between the ages 10 and 19 is that their chances of graduating from high school decline with the age of arrival. Overall we find that each year in the U.S. beyond age 10 is associated with approximately 2 percent higher wages. There does not appear to be much difference between this relation during immigrants’ teens and twenties. We find little evidence that there is any age at migration effect associated with this experience. This research has been supported by Center for Human Potential and Public Policy at the Irving B. Harris Graduate School of Public Policy. We have benefited from comments by Kevin Murphy, Fred Morrison, and Larry Stienberg and workshop participants at the University of Chicago. All errors are ours. 1 I. Introduction Large literatures spanning the fields of economics, sociology and developmental psychology emphasizes that experiences during childhood can have large impacts on subsequent development and well-being in terms of health and cognitive skills, and the ability to invest productively in schooling and other forms of human and social capital. This literature suggests that investments early in life have large returns. Unfortunately, measuring the returns to these early investments on adult attainments is difficult because with relatively few exceptions, it is almost impossible to distinguish the returns to early childhood investments in skills from the returns to investments made in later years. Thus, there have been relatively few empirical estimates of the relative returns to such investments. (See Heckman, 2000; Barnett, 1993) There also is a large and mostly unrelated literature in economics on immigrant assimilation. Much of this literature has sought to determine whether and how long it takes for immigrants, mainly those who arrived as young adults, to “catch-up” to the native born or whether they acquire “host” country-specific skills. Evidence that experience in the host-country is associated with higher wages is taken to imply that immigrants acquire new skills after they arrive or that they learn to adapt their existing skills to their new environment (Eckstein and Weiss, 2000). The assimilation of immigrant children has become an important topic for policy analysts and researchers as this group has grown in size. Approximately 20 percent of all U.S. children are immigrants or are children of immigrants. Of this percentage about 55 percent is from Latin America and about one third is from Mexico (Hernandez, 1999). In this paper, we examine whether the benefits from time spent in the United States depends on the age when an immigrant arrived. In particular, we are interested in whether the assimilation process differs for immigrants 2 who arrive during early childhood compared with those who arrive as adolescents or at later ages. Broadly speaking, we propose to estimate the effect of “Americanization” of Mexican immigrants at different stages of childhood and young adulthood on wages and a variety of other socio-economic outcomes. This paper is motivated by the idea that individuals may acquire different quantities and types of human and social capital at different ages. The experiences that a typical young child has in the United States might include play with American children, exposure to English language and American culture, access to American education, diet, and medical services. Exposure at young ages may be beneficial to a child’s development and enhance her social and economic success as an adult. Alternatively, at young ages, parents and parenting behavior may be of primary importance, with external environmental factors playing a secondary role. Only later as children mature does exposure to these external factors, such as the public school system, begin to become valuable and influence how the child fares as an adult. By comparing Mexican immigrants who arrived in the U.S. during early childhood with their counterparts who arrived later in their childhood or as young adults with ethnically comparable natives, we can assess the “return” to early Americanization. We estimate the relative “return” to experience acquired at different ages in the United States. In order to control for many of the unobservable differences between immigrants and natives, we restrict our analysis to immigrants from a single source country and natives of the same ethnicity as these immigrants. For immigrants who arrive when they are very young children, we find that experience in United States does not influence a variety of labor market and social outcomes as adults. As along as an immigrant arrives prior to age 10, it does not appear to matter much whether the child 3 arrives as an infant or in early primary school. In either instance, the immigrant will perform identically in the labor market as an ethnically comparable native and also will have similar socio-economic outcomes. Beyond age 10, however, the older immigrants are when they arrive in the United States, the lower are their wages as adults and the more they exhibit socialeconomic characteristics similar to immigrants who arrive as adults. One reason for the poorer labor market performance of immigrants who arrive between ages 10 and 19 is that they acquire less U.S. schooling and their chances of graduating from high school decline with the age of their arrival. In the remainder of the paper we first summarize some of the existing literature. In section 3, we present a simple model of accumulation of country-specific skills. In section 4, we describe our data from the 1970, 1980, 1990, and 2000 U.S. Censuses. Our empirical findings are discussed in section 5. Section 6 concludes and discusses some policy implications of our results. II. Previous Literature Previous research on the well-being and development of immigrant children observes that those from Latin America and the Caribbean, in particular, are more likely living in poverty, less likely to have access to health care, have parents who are less involved in their schooling, less likely to attend pre-school programs such as Head Start, and have lower measures of “selfefficacy” than native children. Not only do these tendencies hold relative to the native population, but they also hold relative to ethnically comparable native children. The literature on child development associates these characteristics with poorer economic, social, and emotional outcomes later in life. Yet despite these factors, immigrant children tend to be healthier and engage in fewer risky behaviors as adolescents. Many immigrant children also earn better grades and score higher on standardized tests than their native counterparts, although this tendency 4 holds less for Hispanic immigrants than it does for other immigrant groups (National Research Council, 1995; Fuligni, 1997). Some researchers speculate that status as an immigrant child may to some degree insulate an individual from the adverse effects of poverty (Herdandez and Drake, 1999; Nord and Griffen, 1999). The status of immigrant children concerns policy makers and those interested in child development because they constitute a substantial fraction of U.S. children and because events and conditions that occur at early ages may have lasting influences on individuals’ lives. Developmental psychologists argue that family, socio-economic and cultural settings affect a child’s cognitive growth even before formal schooling. Further, these factors influence school performance and cognitive ability. (Christian, Bachnan, and Morrison, 2001). In principle, immigration marks a potentially dramatic change in a child’s environment that in turn may have an especially large impact (positive or negative) on a child’s subsequent development. It is possible that the stress and effort associated with parents adapting to a new country may affect the quantity and quality of parental inputs, especially for their young children. If this were the case, then children might be better off if their parents immigrated when they were older, say already school-aged, than when they were very young. Alternatively, very young children may be more resilient than older children and adults. As a result, we would expect them to adjust to the stresses and challenges associated with immigration and to acquire more easily the necessary skills associated with a new culture (National Research Council, 1995). Under these circumstances, experience in an immigrant’s host-country would have a higher “return” if this time in the host country is spent when the immigrant is a child instead of as an adolescent or adult. 5 Finally, experience in the host-country at very young ages might be unimportant in facilitating the assimilation process. The most important investments in young children may come directly from parents in a way that is independent of their country of residence. If parental inputs do not change with immigration, it might not make much difference whether an immigrant acquires these skills in their source country or the host-country. If the essential skills that immigrants acquire in their host-country come from contact with schools and the labor force, immigrating at an early age may not be important. It is possible that when it comes to immigrant assimilation, there is nothing special or critical about early childhood experiences. Economists have given relatively little attention to the question of how the assimilation process differs between immigrant children and adults (Kossoudji, 1989; Friedberg, 1993, 2000; Borjas, 1995; Schaafsma and Sweetman, 2001). Instead, this literature largely focuses on the rate that immigrants assimilate into labor markets (and participation in social programs) by either explicitly or implicitly estimating the returns to a year spent in the host country. It attempts to address one of two questions: (I) do immigrants “catch-up’’ with natives during their lifetimes; and (ii) do immigrants appear to adopt or to acquire host-country specific skills (LaLonde and Topel, 1997; Borjas, 1999). Much of the assimilation research in the economics literature is based on Chiswick’s model that relates experience in the host-country with wages (Chiswick 1978). As immigrants spend time in the host country, they adapt pre-existing skills and acquire new country specific skills that yield a payoff in the host country’s labor market. To estimate the gains associated with immigrants’ experience in the United States, Chiswick estimated the “assimilation profile” of US immigrants in 1970 using an econometric specification similar to the following: (1) lnwi = ß Xi + aAi + gYi + ei. 6 In (1), lnwi is the log of a worker’s wage, Xi is a vector of individual characteristics, Ai denotes and individual’s current age (or potential experience), and Yi is years spent in the host country. Years in the host country are defined as an individual’s current age minus their age of migration, ai. Under some assumptions, the “return” to a year spent in the U.S. is equal to g (LaLonde and Topel, 1997).1 This specification can capture increasing or decreasing returns to years spent in the United States. But it does not distinguish between experience in the host-country as a child and experience as an adult. Studies using U.S. Census data indicate that for immigrant groups that are on average low-skilled when they arrive in the United States have higher “returns” to U.S. experience (LaLonde and Topel, 1991; Duleep and Regets, 1992; 1997). Among Mexican immigrants, g is approximately 0.02. This figure suggests that 10 years of experience in the United States is associated with 20 percent higher wages (LaLonde and Topel, 1991). III. Theory and Empirical Methodology The idea that motivates our analysis is that the return to experience in the host-country may depend on the age when individuals acquire this experience. Not only do the number of years in the host-country matter, but so do the ages at which these years occur. One reason that age of migration might matter is that individuals acquire different skills and knowledge at different ages. Adults likely will collect job-specific training, knowledge of job prospects, and U.S. job experience. Young adults and teenagers likely receive general training and formal schooling. Children are likely to receive formal schooling as well as ‘socialization’ with other 1 There are several reasons why this interpretation could be incorrect. First the unobserved skills of successive immigrant cohorts may change. So that evidence of assimilation may result from more recent cohorts being less skilled than prior cohorts (Borjas, 1985). Second, selective emigration patterns may leave the most successful immigrants in the host-country (Jasso and Rosenwieg, 1982; Brojas and Bratsberg,. 1997; Edin, LaLonde, Aslund, 2000). 7 children. Very young children also may receive age-specific U.S.-specific investments as well, including exposure to language, access to health care, and diet. A second reason age at migration might matter is that the returns to these various skillsacquired at different ages–may not be the same. Some skills--speaking a language without an accent or acquiring grammar--may be gained more efficiently at younger ages than at older ages. The same might be true for other country-specific skills. It also is possible that young children adapt more readily to the “stress” associated with immigration and are in a better position to acquire new skills. A learning-by-doing model that accounts for age-dependent returns to host-country experience assumes that each year of experience in the host-country increases an immigrant’s productivity by an amount dk,a, where 0 < dk,a. The amount by which immigrants’ productivity rises depends on how many years they have been in the host-country, indexed by k, and the age when they arrived in the host country, a. During early childhood, a year in the host-country increases an immigrants’ subsequent productivity by a different amount than when the immigrant is a teenager or an adult. Further, when an immigrant has been in the host-country for five years, the amount that an additional year of experience raises productivity depends on her age when she migrated. More formally, we define an immigrant’s earnings after being in the United States for Y years as follows: Y W Y = W 0 J k=1 ( 1 + δ k,a ) , 8 where W is an individual’s wage after being in the host-country for Y years, W0 is her stock of human capital that is not due to experience in the host-country, and Y=A-a. Taking logs we obtain the following expression: (2) lnwi = ßXi + Σ55j=25 αj Ι(agei = j) + ΣΑk=a δk,a I(Zi = k) + εi where I(Zi = k) is a dummy variable indicating whether immigrant i was in the U.S. at age k. This model predicts that the difference between the earnings of two immigrants who are the same age, A, but one who arrived at age a and the other who arrived at age b (a<b) is given by: A 3 δ k =a A k,a − 3 δ k = b k,b An implication of this expression is that five years experience in the host-country has different impacts on productivity depending on an immigrant’s age-of-migration. A special case of the foregoing model is the familiar expression estimated by Chiswick and others in their studies of immigrant assimilation. When productivity increases associated with a year of experience in the host-country do not depend on how long an individual has been in the host country nor do they depend on the age-of-migration, then dk,a = d for all ages, k. In this case, expression (3) simplifies to the more familiar expression (1). We can estimate the parameter d using years since migration, Y, as a regressor instead of the vector of dummy variables indicating whether an immigrant was in the host-country at age k. The idea underlying expression (2) is that the age when an individual acquires hostcountry experience may matter. The impact of an additional year of host-country experience depends on both immigrants’ age at migration and accumulated years of experience in the host country. Because these two variables are related through a person’s age, it also is true that the 9 impact of experience in the host-country is a function of both an immigrant’s age at migration and her current age. Our conjecture implies that expression (1) should include an interaction between years in the host country, Yi, and the age-of-migration, ai. An extension of (1) yields the following expression: (3) lnwi = ßXi + aAi + g1Yi + g2Yiai + g3ai + εi. In (3), we include the interaction between years in the host-country and age-of-migration, as well as the main effect for age-of-migration. This specification captures the idea that not only is the gain from an additional year of experience in the host-country dependent on age-of-migration, but that age at migration may be associated with an independent impact on an individual’s productivity. Individuals who come at older ages may miss out on the opportunity to acquire developmentally dependent skills. The literature underscores several problems with expression (3). First, the parameters are not identified. This identification problem is seen by substituting for years since migration, Yi (= Ai - ai), in expression (3) to yield the following: (3’) lnwi = ßXi + (a + g1)Ai + (g1 + g3)ai + g2Ai*ai + g2ai2 + εi. As shown by (2’) the effect of experience in the host country on wages is identified from variation in age-of-migration. But if this variable has its own impact on earnings, then returns to host-country experience are not identified. The interaction between current age and age at migration in (3’) identifies how returns to host-country experience vary with age at migration. But, this interpretation depends on the restrictions implied by (3). There, we assume that log wages are linearly related to years in the host-country. Alternatively, if the true relationship between log wages and time in the host 10 country is quadratic and age at migration does not matter, the variables in (3’) are exactly those that we would include in our estimation. The true assimilation profile might be nonlinear if there are decreasing or increasing returns to time spent in the U.S. For example, the first few years of learning English might have greater returns than the next few years, regardless of the age at which the language proficiency is gained. Accordingly, the only way to identify the impact of age at migration on the “returns” to host country experience is to restrict the functional relationship between years in the host country and wages. In the special case in which this relationship is linear, evidence of non-linearities in this relationship might be taken as evidence that age at migration matters. Even if we impose sufficient restrictions to separately identify the impact of experience in the host country and the effects of age-of-migration, the samples used for these analyses may produce biased estimates. The first problem is that in a cross section, experience in the hostcountry may be correlated with changes in the skills of successive immigrant cohorts. If earlier immigrant arrivals were more skilled or had skills that could be more easily adapted to the host country, the positive relation between years in the host country and wages results, at least in part, from “declining cohort quality” (Borjas, 1985). In the U.S., new immigrants are less skilled than the old (Chiswick, 1986; Borjas 1995). One way to address this problem is to use two or more cross sections in the analysis and control directly for cohort effects (Borjas, 1985). Another way to address the problem in a study of U.S. immigration is to estimate the model separately for immigrants from different countries of origin (LaLonde and Topel, 1991). This approach works in practice, because the skills of successive immigrant cohorts declined largely because of the shift in the countries of origin of U.S. immigrants. 11 Another problem that may produce spurious results on the importance of age at migration is that in cross sectional data individuals who migrated as young children must have been in the host country for many years and as a result must be part of a different arrival cohort than immigrants who migrated as young adults (Friedberg, 1993). Any estimated relationship between wages and age at migration may result from changes in “cohort quality.” The interaction between years in the host country and age at migration may control for higher returns to experience for more skilled immigrants and not the impact that immigrating young has on the returns to host country experience. In our empirical work below, we attempt to address these issues by pooling cross sections from the 1980, 1990, and 2000 U.S. Censuses and including controls for birth cohort and year of interview. We hope to mitigate the effects of declining cohort quality by analyzing only Mexican immigrants. An objective of this study is to show what the data reveal about the likely importance of an individual’s age-of-migration, recognizing that this information is obtained by imposing restrictions on the relationship between experience in the host country and socio-economic outcomes, such as wages. Because of the identification problem discussed above, any relationship that we find that relates age at migration to socio-economic outcomes, could be explained by an alternative functional relationship that relates experience in the host country and these outcomes. Nevertheless, as indicated below, we believe that the patterns that we observe in the data are probably not the result of restrictions that we impose on the data. In our empirical work below we estimate more general versions of (3’). Our rationale follows from (2). In that framework, the impact on wages for an immigrant who has been in the host country for Yi years and who migrated at age ai is given by: γA,a = ΣΑk=ai δ k,a 12 If we define I(AIi = j) as a dummy variable which equals 1 if the age at migration for individual i equals a’, then the γ parameters as defined above are the coefficients on age at migration from the following relationship: (4) lnwi = ßXi + Σ55j=25 αj Ι(agei = j) + ΣΑk=a γA,a I(AIi = j) + εi We might estimate (4) simply by controlling for a vector of dummy variables indicating the age when the immigrant arrived in the host country. This relationship is consistent with the concepts underlying expression (2), but also with other specifications of the relationship between immigrants’ productivity and skills acquired in the host country. In principle, the γ parameters have an important structural interpretation, knowledge of which enable us to answer several theoretical and policy related questions for the U.S.: (1) Does the age at which immigrants arrive matter? (2) How important are “early childhood experiences” in the host country? (3) What are the relative returns to U.S. schools versus U.S. work experiences or U.S. childhood experiences? (4) Are there policy implications for existing or alternative interventions? (We discuss the policy implications of age-dependent returns to Americanization in Section 6.) For estimation purposes, a problem with expression (4) is that the each of the γ parameters depends on an individual’s current age. As a result, the estimation is sensitive to not only when individuals migrated, but also to the age distribution of the sample. Nonetheless, we observe below that despite this shortcoming associated with (4), the estimated coefficients are revealing about the assimilation patterns in the data. However, we also consider two modifications of our analysis that address this issue. First, we estimate our model when we limit the sample to immigrants who arrived prior to age 25 and who are between 25 and 54 years (in 13 the 2000 Census). In this case, the estimated coefficients measure the cumulative impact of hostcountry acquired skills up to age 25. In our empirical work below, we follow standard methods to estimate the different rates of returns to being in the United States as a young child, adolescent, or young adult. The log wage specification of equation (4) allows us to estimate whether the impact of years of U.S. experience differs by age and whether differences in the returns to U.S. experience correspond to phases of development (e.g., early childhood, adolescence, adulthood). The differences among the estimated age at migration parameters, gamma, determine the rate of return for a specific set of years in the U.S. For example, the quantity, γj - γj’ is equal to the return on the (j-j’) years of U.S. experience that occur between ages j and j’. If Americanization is to have a differential rate of return for different ages spent in the U.S., then the return on (j-j’) years of U.S. experience which occur between different ages, say z and j-j’-z, should be different. If these quantities are equal, then there are no age-dependent effects of U.S. experience–a year in the U.S. is a year in the U.S. no matter at what age it occurs. There might be nonlinearities in the assimilation profile for reasons other than the influence of age-of-migration. As discussed above, the assimilation profile might be nonlinear simply because there are decreasing or increasing returns to Americanization. For example, the first few years of learning English might have greater returns than the next few years, regardless of the age at which the language proficiency is gained. The key difference between a model in which age at migration matters and one in which experience in the U.S. does not depend upon age of arrival is that the points of non-linearity should differ among people of different (current) ages in the latter case, while the points of non-linearity due to age at migration effects should occur at the same ages among people of different current ages. 14 To illustrate this point, suppose the returns from assimilation were substantially greater during the first ten years in the host-country than during the remaining years, and there is no age at migration effect. In this case, the assimilation profile is nonlinear. But, the point of nonlinearity occurs at different ages for two immigrants with the same number of years in the U.S. but whose current ages are different. A 30-year-old immigrant with twenty years in the U.S. will have a “kink” in his assimilation profile at age 20 while a 40-year-old immigrant with the same U.S. experience will have a kink at age 30. By contrast, non-linearities due to an age-ofmigration effect imply “kink points” at the same age for individuals of different cohorts or current ages. The impact U.S. Experience prior to a particular age will appear to be the same regardless of an individual’s current age. Therefore, below we explore whether the “kink points” relating age at migration and wages appear to depend on an immigrant’s age. IV. Data from the U.S. Census Our primary source of data in this study is the five percent public use micro data samples (PUMS) from the 1980, 1990, and 2000 decennial U.S. Censuses of Population and Housing. Because of the size of the five percent PUMS, limiting the sample of immigrants to those from a single source country, Mexico, still yields a large number of relatively homogeneous immigrants compared to immigrant population as a whole. In addition, we use the one percent PUMS from the 1970 decennial U.S. Census to conduct some additional analyses. We define the respondent’s age at migration as the difference between the respondent age at the time of the Census (April) minus the number of years elapsed between the year of the Census and the year in which they last entered the United States. Because the year of entry question on the 1980 and 1990 Censuses only provides categorical responses that usually cover 5 to 10 year periods, it is rarely possible to determine the exact age at which the respondent 15 immigrated. Based on the respondents’ age and the range of years in which they entered the U.S., we calculate maximum and minimum values for the age at migration and then compute the mean of these values to obtain an estimated age-of-migration. For older respondents in these Censuses it is not possible to determine the age of entry, even within five or ten years. Accordingly, in this study, we limit our sample to the 25 to 35 year olds in the 1980 Census and 25 to 45 year olds in the 1990 Census. For individuals in these age cohorts it is possible to determine year of entry within five years. For individuals in the 2000 Census, we can determine age of entry. For these immigrants we limit our sample to those 25 to 55 years of age at the time of the Census. We report sample sizes and summary statistics for our sample of Mexican immigrants and Mexican-American natives for all three Census years in Tables 1A and 1B. The first table reports these statistics for all individuals in the combined sample; the second table reports statistics for individuals born between 1945 and 1955. In the full sample, the average age at migration is about 20 indicating that a large percentage of these Mexican immigrants arrived as children. But we do have a large number of Mexicans who arrived as adults, which in our analysis constitutes another comparison group besides Mexican-American natives. On the one hand, it is clear that natives are more advantaged than immigrants in terms of education, English ability, and labor market performance. According to 2000 Census, about 76 percent of Mexican-American natives had a high school degree compared with only 31 percent of Mexican immigrants. Mexican-American natives were less likely to reside in the traditional entry states for Mexican immigrants, namely, California, Illinois, and Texas, where large enclaves exist. On the other hand, we see that immigrants are less likely to receive public assistance and less likely to have a work preventing disability. Immigrants also are more likely 16 to be married and have more children than natives. Finally, real wages and earnings for both groups have generally decreased from 1980 to 1990, reflecting the decline in real wages among low-skilled workers over this period. These same patterns hold in Table 1B in which we hold constant an individual’s birth cohort across Census years. Immigrants are again less educated, earn less, and speak English more poorly than natives. Age at migration is higher for immigrants because the way we constructed our sample it is possible to be an older immigrant in 2000, whereas it is not in 1980. V. Empirical Findings 5.1 Basic results We begin by presenting conventional estimates of the relationship between Mexican immigrant wages and years in the United States. These estimates are based on the pooled samples of Mexican immigrants described in the previous section. We include controls for current age through a series of dummy variables indicating each possible age in the sample and Census year. We base our first group of estimates on the conventional “assimilation” specification summarized by expression (1). As shown by the first column of Table 2A, immigrants who have been in the U.S. the longest have significantly higher wages. We see that for Mexican immigrants each year in the U.S. is associated with approximately 1.5 to 2 percent higher wages. The quadratic term suggests that this rate rises, but at a decreasing rate. Subject to the aforementioned concerns about identification, the figures in the second column in Table 2A suggest that the benefits of time in the U.S. decline with age. The negative coefficient for the “age times years in the U.S.” interaction term suggests that the assimilation profile is flatter for older immigrants. Because years since immigration and age at migration are directly related to each other through an individual’s current age, the relationship between wages 17 and years since immigration is inversely related to the relationship between wages and age-ofmigration. This inverse relationship is seen in column 3 of the table. Finally in column 4 we add an interaction between age and age at migration term. These relationships hold for our subsample of Mexican immigrants who were born between 1945 and 1955. As discussed above, without restrictions on the foregoing relationships it is impossible to identify them separately. Our approach is to let the data suggest the appropriate restrictions. Accordingly we estimate a model that includes a vector of dummy variables denoting age at migration. We summarize our results for Mexican immigrants by plotting the coefficients on age at migration in Figure 1 for our full sample and in Figure 2 for our sample of individuals born between 1945 and 1955. Our results from this exercise are mixed. The results summarized in Figure 1 are consistent with the notion that a year in the U.S. is worth a year in the U.S. no matter what the individual’s age. Closer inspection of the coefficients in Table 3 suggests that the foregoing contention is true, except possibly during the pre-school years. However, beyond those years time spent in the U.S. increases wages by about the same amount in percentage terms. The linear shape of this relation during the school and early work years also suggests that the payoff to U.S. experience is comparable during these two life stages. The results shown in Figure 2 indicate that this wage/age at migration effect may have birth cohort effects. The relation is striking for the 1945 to 1955 birth cohort. Their age at migration profile is relatively flat from ages 0 to 9. One interpretation of this pattern is that experience in the United States prior to age 10 did not matter. It makes no difference for these individuals’ wages as adults whether they immigrated at age 1 or at age 9. Further, immigrants who arrive prior to age 10 on average, earn approximately the same amount as native Mexican- 18 Americans. Time in the United States prior to age 10 might matter, but these results suggest that immigrants acquire these age-specific skills quickly. By contrast to Mexicans who arrived during early childhood, we find in both samples that Mexicans immigrants who entered the U.S at age 10 or beyond earn significantly less as adults than native-born Mexican Americans. We observe that wages decline sharply with age at migration to the United States–at a rate of roughly 2 percent per year. We estimate that as an adult an immigrant who arrived at age 20 receives wages that are about 25 percent lower than his native counterpart (of the same age). The estimated nonlinearities in the age at migration profile provide mixed evidence in favor of the view that the returns to Americanization differ by age-of-migration. A Mexican immigrant born between 1945 and 1955 who arrived at age 4 has five more years of U.S. experience than a similarly aged immigrant who arrived at age 9. But as adults both immigrants earn on average the same wages. Likewise, an immigrant in this birth cohort who arrived at age 9 has five more years of U.S. experience than a similarly aged immigrant who arrived at age 14. But, now five years difference in U.S. experience is associated with about a 10 percent difference in wages. Similarly, U.S. experience acquired during the next five years (i.e. between ages 14 to 19) also is associated with an additional 10 percent impact on earnings. The first part of this relationship between age at migration and wages does not look like an assimilation profile, but the part to the right of the “kink” in Figure 2 does. One possibility, however, is that this pattern mirrors a non-linear relation between wages and years since migration in which after a period of time, experience in the host country has no additional impact on productivity. However, this point does not hold for our full sample of Mexican immigrants. 19 In the full sample, 5 years of U.S. experience starting at age 4 appears to be worth the same as 5 years starting at age 9. The evidence presented here indicates that immigrating during early childhood might not be important in determining future success in the labor market. If there is a critical age of arrival, our evidence suggests that it occurs somewhere between age 4 and 9 or as late as the fourth grade. Whatever Mexican immigrants acquire that is important for them to succeed in the U.S. workforce as well as their native counterparts can be acquired during these ages in school, in the community, or on the job. Beyond this age our evidence is consistent with the standard view that years of experience in the U.S. are associated with higher earnings, and it does not matter at what ages individuals acquire this experience. 5.2 The Mechanisms of Assimilation: Why Is it Important to Arrive By Age 10? Why are immigrant children who arrive by age 9 more productive than their counterparts who arrive at later ages? One can imagine various explanations for this evidence of assimilation: Immigrants who arrive as children have better language skills, acquire more schooling, and are more familiar with cultural and social institutions. The process of assimilation may be different depending on an individual’s age-of-migration. Among adult immigrants labor force experience would seem to be an essential mechanism for this assimilation, whereas for immigrant children other mechanisms must be at work. We examine two potential channels through which assimilation may operate–education and language ability. The two broken lines in Figure 1 illustrate the relative earnings of immigrants by age at migration holding constant (i) high school graduation status and (ii) high school graduation status as well as English fluency. (We present regression coefficients for the first 24 years in Table 3.) Controlling for a high school degree, we see that age at migration is not associated with wages 20 for those who arrived prior to age 15. An immigrant who arrived at age one and earned a high school degree would be expected to have similar earnings to an otherwise comparable immigrant who arrived at age 14 and earned a high school degree. By contrast, immigrants who arrive after the age of 15 suffer a roughly 2 percent earnings penalty for each year later they arrive. This evidence suggests that Americanization of Mexican immigrant children works through the U.S. schooling system or through some factor that is highly correlated with high school completion. Once we account for educational attainment, the first 14 years in the U.S. as a child appears to have no additional impact on subsequent earnings. Further, a Mexican immigrant who arrives in the U.S. by 14 will do as well as a MexicanAmerican native with similar educational attainment. (Note that this schooling adjustment does not even take into account that some immigrants’ schooling was obtained in Mexico.) The apparent importance of high school graduation as the mechanism that predicts whether child immigrants from Mexico are assimilated as adults is underscored by the differences in the amount of U.S. schooling acquired by immigrants who arrived prior to age 10 and their counterparts who arrived between the ages of 10 and 19. The first two histograms in Figure 3 present the distributions of years of schooling for Mexican immigrants who migrated prior to age 10 (Figure 3a) and who migrated between the ages of 10 and 19 (Figure 3b). The modal number of years of U.S. schooling among immigrants who migrated as young children is 10. By contrast, among those migrated in their teens, the modal years of U.S. schooling is zero. Indeed, nearly 60 percent of these immigrants did not acquire any U.S. schooling. The last two histograms make the point that the distribution of U.S. schooling among immigrants who came as young children (Figure 3c) is similar to the distribution of U.S. schooling among MexicanAmerican natives (Figure 3d). However, it is worth observing that even though young 21 immigrants perform as well as natives in the labor market, these immigrants acquire somewhat less schooling. This evidence is consistent with the findings in the literature that suggest that to some degree immigrant status insulates individuals from adverse socio-economic outcomes. We also considered whether an immigrant’s fluency (in English) as an adult could explain the relationship between age at migration and adult wages. Our rationale is that immigrants who arrive later in their childhood may not learn to speak English as well as their compatriots who arrived at younger ages. Accordingly, they earn less as adults. When we condition on fluency we find as with high school graduation status that age at migration is a less important determinant of adult earnings. In other words, among immigrants with similar language speaking skills as adults, age at migration does not appear to be an important determinant of earnings until the end of their high school years. But we also find that among immigrant children our measure of fluency is less highly correlated with age at migration than is high school graduation status. Therefore, when we only condition on fluency, we find that age at migration as a child still predicts earnings as an adult. When we control for both fluency and high school graduation status, we find that immigrants who arrived before age 15 earn about the same if not slightly more than MexicanAmerican natives. (See the small dashed line in Figure 1.) Further, there still does not appear to be a relationship between age at migration and wages for this group of immigrant children. This evidence reinforces our earlier point that among immigrant children, gains from time in the U.S. largely depends on whether they acquire proficient language skills and whether they graduate from a U.S. high school. For children, experience in the U.S. has little additional impact on subsequent productivity. 22 Turning to Mexican immigrants who arrived at older ages, we find that schooling does not appear to explain the impact of U.S. experience on wages. This finding makes sense because these immigrants acquired their schooling in Mexico rather than in the U.S., and so U.S. schooling could not be a mechanism for their assimilation. It could still be possible that those with more schooling abroad would have faster assimilation rates in the U.S., but among adults, education attainment is not sufficiently correlated with age at migration to affect these results. Age at migration is correlated with having a high school degree among child immigrants but not among adult immigrants. 5.3 Do Immigrants Arriving Later in Childhood Have Less Able Parents? It is possible that the reason immigrants who enter the U.S. later in their childhood earn less as adults than those who arrive earlier is that they come from more disadvantaged backgrounds, and not simply that they had fewer opportunities to receive U.S. education or to learn English or that it is more difficult for children of this age to assimilate. To assess this possibility, we compared the parents of foreign-born children in the 1970 and 1990 Censuses. The 1970 Census provides particularly useful information because the immigrant children in 1970 Census are in principle from the same population as the adult immigrants the 1990 Censuses, whose labor market outcomes we analyze in this paper.2 For each child, we calculate 2The sample of immigrant children in 1970 may be from a different population of individuals than the samples of adult immigrants in the 1980 and 1990 Censuses because of emigration. There are not official measures of immigrant emigration in the U.S., although the existing evidence suggests that emigration rates among Mexican immigrants are especially high (LaLonde and Topel, 1997). Less clear is how emigration rates vary by age-ofmigration. Our analysis in this paper assumes that emigration rates among immigrants who arrive as children are low. 23 their age at migration into the U.S. and the education, earnings, and labor and language ability of the head of their household.3 As shown by Table 4, in the 1990 Census child immigrants from Mexico who arrived later in their childhood have somewhat less able parents. The top panel of the table shows that the parents of children who entered the United States between 11 and 15 years of age earned approximately 7.5 percent less than parents whose children entered the U.S. when they were between 0 and 5 years old. Similarly, the parents who migrated with older children were 4.5 percentage points less likely to have graduated high school and 2.5 percentage points less likely to be fluent in English. The foregoing results include all foreign-born children in the 1990 Census, regardless of country of origin. It is possible that individuals from more advantaged countries tend to immigrate to the United States at earlier ages, or have younger children when they immigrate. In this case, the above specifications would confound the effect of country of origin and age-ofmigration. The second panel shows the same results when we limit the sample to parents of children who immigrated from Mexico. Although we still see a negative relationship between age of entry and parental ability, the effects are between one and three percentage points lower than in the full sample. These results are suggestive indicating that at least some of the age at migration effects discussed above result from teenage immigrants having less skilled parents. But analysis using parents of the cohort of child immigrants in 1990 is not ideal because these parents are different than the immigrants whose labor market outcomes we observe in 1980, 1990, or 2000. In order to examine the possible selection issues for the immigrants we study, we performed a similar 3 We limit our sample to foreign-born children under the age of 21 who were listed as the son/daughter of the 24 analysis using the 1970 PUMS. We present these results in the third and fourth panels of Table 4. Here the sample sizes are considerably smaller, both because there were fewer immigrants in 1970, but also because the 1970 PUMS was based on only a one percent sample of the population. In the 1970 sample of all immigrant children, we again find evidence of a negative relationship between age at migration and parental ability. However, in the sample of Mexican immigrants, we find mixed evidence. There is some evidence of a small negative association between age at migration and parental skill, but standard errors are large. Given the results based on the larger 1990 Census, and that intergenerational correlation in skills is substantially less than one, we conclude that although some of the decline in immigrant’s relative earnings is due to a negative correlation between age at migration and parents skills, this fact likely does not explain much of the pattern observed in either Figure 1 or Figure 2.4 5.4 Characteristics of the Parents of Mexican-American Natives Throughout this analysis, we have been comparing the Mexican immigrants to MexicanAmericans born in the U.S. However, in order to better interpret these findings, it is useful to get a better sense of whether these natives of Mexican ancestry were second generation, or had been in the U.S. for several generations. We might imagine that the childhood and upbringing of second generation Mexican-Americans may more closely match that of immigrant children (first generation) as compared with the childhood of third generation Mexican-Americans. To examine information on the parents of Mexican-American children, we again used the 1970 household head. Solon in his review of the literature reports that studies of the intergenerational elasticity of son’s wage to father’s wage ranges between 0.3 and 0.5. Studies based on single year earnings measures report smaller elasticities (Solon, 1999). A more recent study, based on a long earnings panel from the U.S. Social Security Administration, finds elasticities both for son’s and daughter’s earnings to father’s earnings to be on the order of 0.6 (Mazumder, 2001). 4 25 Census. In principle, these children are from the same population as the adult natives in our sample from the 1980, 1990, and 2000 Censuses. As shown by Table 5, nearly 80 percent of the Mexican-American children in 1970 were at least third generation–that is, at least one of their parents also was born in the United States. Hence, our findings are not due to most Mexican-American natives being the children of immigrants. Although the third generation children tend to have slightly better educated parents than second generation children, they do not seem to come from families with appreciably higher earnings or employment patterns. By comparison, children, who were not born in the United States, appear to have less skilled parents as measured by earnings and education levels. The foregoing results from the 1970 Census make our finding that Mexican immigrants who arrive before age 10 earn just as much as Mexican-American natives even more striking. Not only do these individuals acquire less schooling than natives, but they also likely were raised by less educated parents who earned lower wages than parents of the natives in our sample. The Mexican-American native sample that we use as a comparison group consists of mostly 3rd generation (or greater) individuals. This group is likely relatively assimilated. 5.5 Other Socio-economic Outcomes If the timing of Americanization influences labor market performance, it is likely that it also influences other socio-economic outcomes. Table 7 illustrates the relationship between age at migration and a variety of social outcomes. To simplify the specification, we divided age at migration and current age into several categories.5 5 Models that use a completely flexible specification with individual age indicators for entry and current age yield comparable results. The age-of-migration categories are 0 to 5; 6 to 10; 11 to 15; 16 to 20; and 21 and over. The age categories are 25 - 30; 31 - 35; and 35 and over. 26 To begin, as with wages, we found a nonlinear relationship between age of entry and average weekly earnings, with a sharp change occurring after the age of 10. We also observe this pattern for measures of marital status and fertility. As shown in the table, we find that immigrants are more likely to be married and have more children than Mexican-American natives. However, just as with wages, we see that immigrants who arrived prior to age 10 are significantly different than those who arrived after the age of 10. Mexican immigrants who arrived between the ages of 6 and 10 are roughly five percentage points less likely to be married and female immigrants have 0.25 fewer children than their counterparts who arrived between the ages of 11 and 15. The evidence on marital status and fertility suggests that immigrants who come as young children also later exhibit some of the same social behaviors as natives. By contrast, immigrants who come as older children are more like their counterparts who immigrated when they were adults. This evidence is consistent with that reported in the developmental psychology literature (Hernandez, 1999). But, this pattern does not hold for all of our socio-economic outcomes. Immigrants are less likely than natives to be disabled or receive public aid, but there does not appear to be a relationship among immigrants between age at migration and disability or public aid receipt. VI. Conclusions The pattern of assimilation for young children differs from that for adolescents and young adults. Among Hispanic immigrants, additional years of experience in the United States prior to age 10 are not associated with significantly higher earnings as adults. Beyond age 10, each year of experience in the U.S. is associated with one to two percent higher earnings. This pattern also holds for schooling, and schooling attendance appears to be an important mechanism for 27 assimilating early adolescents. Accordingly, we find that conventional empirical models of immigrant assimilation might be better specified if they counted time in the U.S. starting at about age 10. There are several policy implications for our findings. First, policy makers should not target childhood intervention programs on immigrants rather than on poor children as a whole. Hispanic immigrant children are poorer than native children, but not substantially poorer than ethnically comparable native children. Their economic performance as adults is more closely linked to their status of having come from a low SES household, than their status as an immigrant child. Indeed, the literature and the evidence presented here suggests that a child’s immigrant status to some extent may insulate her from the ill effects of growing up in a low income household. Further, even though Hispanic immigrant children may not perform as well in school as their native peers, or have parents that are as actively involved in their schooling, studies suggest that their parents place more emphasis on academic success and that they have a broader family and peer group that supports this emphasis (Fuligni, 1997). Second, contrary to what has been recommended elsewhere, it does not seem “worthwhile for programs like Head Start and other early childhood programs to target children of immigrants in order to help them adapt more quickly to American culture and language so that they are ready to learn upon entry into school (Nord and Griffin, 1999).” The cohorts of immigrant children studied here did not benefit significantly from such programs. Relatively few of the individuals in our sample likely attended programs such as Head Start. Funding for ESL, bilingual education, and related programs was not significant until most immigrant children in our sample 28 were adults.6 Nonetheless, despite the absence of such programs for these immigrant children, they have performed at least as well in the labor market as ethnically comparable natives. Finally, the evidence presented here suggests that early childhood interventions may not the most efficient use of resources designed to facilitate the assimilation of immigrant children. Instead, our results indicate it might be better to target public funds for immigrants toward those who arrive after age 9 and to provide them with additional services until they graduate from high school. These programs should encourage graduation and fluency. But further research might indicate the benefits of more comprehensive services including those that help young immigrants acquire social capital, self esteem, and other non-cognitive skills. 6 Immigrants with LEP are eligible to participate in programs funded by the Bilingual Education Act (Title VII of ESEA) Emergency Immigrant Education Act of 1984. 29 References Barnett, W. Steven (1993). “Economic Evaluation of Home Visiting Programs,” The Future of Children, Vol 3(3): 93 - 112. 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Wilkins, Roger (2003). “Immigrant Earnings Adjustment: The Impact of Age at Migration, Australian Economic Papers, X: 292-315. 32 Table 1A: Summary Statistics for Samples of Mexican Immigrants and Mexican-American Natives 2000 Immigrant N 257,542 Native 137,748 1990 Immigrant 100,061 Native 93,257 1980 Immigrant 31,314 Native 53,275 37.05 37.51 33.34 33.68 29.53 29.46 21.38678 0 20.21569 0 19.87482 0 High School Graduate 31% 76% 27.64% 72.12% 28.34% 65.64% College Graduate 4% 13% 3.90% 10.09% 3.90% 8.44% Female 44% 52% 44.01% 51.51% 45.54% 50.33% Fluent in English 26.01% 86.87% 27.37% 85.05% 23.04% 78.24% Received Public Assistance 3.00% 3.39% 3.68% 6.11% 3.17% 5.82% Disability that Limits Work 3.92% 6.45% 2.99% 5.06% Disability that Prevents Work 1.67% 3.10% 1.15% 2.20% Age Age of Immigration Married 72.47% 60.20% 72.12% 63.71% 77.19% 69.16% Log(Hourly Wage) 1.97 2.22 1.90 2.14 2.01 2.15 Log(Average weekly earnings) NA NA 5.58 5.80 5.66 5.78 12.66% 22.59% 10.64% 26.12% Does not reside in NY, TX, FL, IL or CA Notes: Authors’ calculations from the 1980, 1990, and 2000 US Censuses. Sample limited to Mexican Immigrants between 25 and 35 in the 1980 Census, 25 to 45 in the 1990 Census, and 25 to 55 in the 2000 Census. Sample also includes Mexican American Natives. 33 Table 1B: Summary Statistics for Samples of Mexican Immigrants and Mexican-American Natives Born Between 1945 and 1955. N 2000 Immigrant Native 52,350 33,568 1990 Immigrant Native 40,590 39,942 1980 Immigrant Native 31,314 53,275 Age 49.3059 49.47569 39.38815 39.50606 29.53 29.46 Age of Immigration 26.63047 0 22.90623 0 19.87482 0 High School 24.63% 72.87% 24.46% 70.80% 28.34% 65.64% College Graduate 4.05% 12.81% 4.04% 11.21% 3.90% 8.44% Female 47.14% 51.50% 46.06% 51.49% 45.54% 50.33% Fluent in English 24.51% 83.84% 26.87% 82.92% 23.04% 78.24% Received Public Assistance 2.81% 2.38% 4.24% 5.55% 3.17% 5.82% Disability that Limits Work 5.25% 8.17% 2.99% 5.06% Disability that Prevents Work 2.39% 4.03% 1.15% 2.20% Married 75.14% 66.66% 78.59% 70.27% 77.19% 69.16% Log(Hourly Wage) 2.02 2.33 1.969364 2.231359 2.01 2.15 Log(Average weekly earnings) NA NA 5.642066 5.898036 5.66 5.78 12.48% 23.11% 10.64% 26.12% Does not reside in NY, TX, FL, IL or CA Notes: Authors’ calculations from the 1980, 1990, and 2000 US Censuses. Sample limited to Mexican Immigrants between 25 and 35 in the 1980 Census, 35 to 45 in the 1990 Census, and 45 to 55 in the 2000 Census. Sample also includes Mexican American Natives. 34 Table 2A: Estimates of Relationship Between Years in the U.S., Age at Migration and Relative Wages of Mexican Immigrants. Age Age Square Years in U.S. Years in U.S. Squared (1) (2) (3) (4) 0.0340 (0.0016)* * -0.0005 (0.0000)* * 0.0176 (0.0004)* * -0.0001 (0.0000)* * 0.0299 (0.0017)* * -0.0004 (0.0000)* * 0.0238 (0.0007)* * -0.0000 0.0529 (0.0016)* * -0.0005 (0.0000)* * 0.0537 (0.0016)* * -0.0006 (0.0000)* * -0.0189 (0.0005)* * 0.0001 (0.0000)* * -0.0238 (0.0007)* * -0.0000 (0.0000) Age of Immigration Age of Immigration Squared Age*Years in U.S. Age*Age of Immigration Female 1990 Census 2000 Census Before 1968 Constant Observations R-squared (0.0000) -0.0002 (0.0000)* * -0.2275 (0.0026)* * -0.1500 (0.0058)* * 0.1711 (0.0060)* * 0.0547 (0.0057)* * 1.3049 (0.0292)* * 273,774 0.11 -0.2288 (0.0026)* * -0.1539 (0.0058)* * 0.1656 (0.0060)* * 0.0452 (0.0058)* * 1.3343 (0.0294)* * 273,774 0.11 -0.2286 (0.0026)* * -0.1560 (0.0058)* * 0.1606 (0.0060)* * 0.0287 (0.0054)* * 1.2995 (0.0292)* * 273,774 0.11 0.0002 (0.0000)* * -0.2288 (0.0026)* * -0.1539 (0.0058)* * 0.1656 (0.0060)* * 0.0452 (0.0058)* * 1.3343 (0.0294)* * 273,774 0.11 Notes: Sample of Mexican Immigrants and Mexican-American Natives defined in Table 1. Models include controls for Census year and whether immigrant arrived prior to 1968. Robust standard errors are in parentheses. ** indicates significant at 1% level. 35 Table 2B: Estimates of Relationship Between Years in the U.S., Age at Migration and Relative Wages of Mexican Immigrants Born Between 1945 and 1955 Age Age Square Years in U.S. Years in U.S. Squared (1) (2) (3) (4) 0.0314 (0.0041)* * -0.0004 (0.0000)* * 0.0170 (0.0007)* * -0.0001 (0.0000)* * 0.0256 (0.0042)* * -0.0003 (0.0001)* * 0.0296 (0.0017)* * 0.0000 0.0511 (0.0042)* * -0.0005 (0.0000)* * 0.0552 (0.0042)* * -0.0006 (0.0001)* * -0.0196 (0.0011)* * 0.0001 (0.0000)* * -0.0296 (0.0017)* * 0.0000 (0.0000) Age of Immigration Age of Immigration Squared Age*Years in U.S. Age*Age of Immigration Female 1990 Census 2000 Census Before 1968 Constant Observations R-squared (0.0000) -0.0004 (0.0000)* * -0.2667 (0.0048)* * -0.1443 (0.0126)* * 0.1625 (0.0179)* * 0.0599 (0.0078)* * 1.3589 (0.0801)* * 86,740 0.11 -0.2678 (0.0048)* * -0.1662 (0.0128)* * 0.1271 (0.0184)* * 0.0255 (0.0088)* * 1.3811 (0.0802)* * 86,740 0.11 -0.2674 (0.0048)* * -0.1558 (0.0128)* * 0.1398 (0.0183)* * 0.0326 (0.0088)* * 1.3385 (0.0800)* * 86,740 0.11 0.0003 (0.0000)* * -0.2678 (0.0048)* * -0.1662 (0.0128)* * 0.1271 (0.0184)* * 0.0255 (0.0088)* * 1.3811 (0.0802)* * 86,740 0.11 Notes: See Table 1B. Models include controls for Census year and whether immigrant arrived prior to 1968. Robust standard errors are in parentheses. ** indicates significant at 1% level. 36 Table 3: Relative Wages of Mexican Immigrants who Immigrated to the U.S. as Children (1) Variable Coeff fluent gths iaged1 iaged2 iaged3 iaged4 iaged5 iaged6 iaged7 iaged8 iaged9 iaged10 iaged11 iaged12 iaged13 iaged14 iaged15 iaged16 iaged17 iaged18 iaged19 iaged20 iaged21 iaged22 iaged23 iaged24 -----0.015 -0.034 -0.049 -0.012 -0.045 -0.072 -0.065 -0.078 -0.096 -0.123 -0.150 -0.141 -0.143 -0.155 -0.177 -0.183 -0.204 -0.219 -0.236 -0.252 -0.272 -0.293 -0.310 -0.324 (2) (3) S.E. Coeff S.E. 0.017 0.016 0.016 0.016 0.017 0.018 0.015 0.016 0.015 0.014 0.015 0.012 0.011 0.009 0.008 0.007 0.006 0.006 0.006 0.006 0.007 0.007 0.008 0.007 --0.254 0.029 0.004 -0.013 0.024 0.002 -0.017 -0.012 -0.017 -0.025 -0.042 -0.058 -0.041 -0.026 -0.024 -0.042 -0.043 -0.065 -0.081 -0.101 -0.122 -0.144 -0.165 -0.185 -0.197 --0.003 0.017 0.016 0.016 0.015 0.017 0.018 0.015 0.015 0.014 0.014 0.015 0.011 0.011 0.009 0.008 0.007 0.006 0.007 0.006 0.007 0.007 0.007 0.008 0.007 Coeff 0.102 0.236 0.037 0.014 -0.003 0.034 0.013 -0.003 0.004 0.003 0.000 -0.013 -0.026 0.000 0.017 0.023 0.009 0.011 -0.010 -0.025 -0.044 -0.064 -0.085 -0.106 -0.125 -0.137 S.E. 0.003 0.003 0.017 0.016 0.016 0.015 0.017 0.018 0.015 0.015 0.014 0.014 0.015 0.011 0.011 0.009 0.008 0.007 0.007 0.007 0.006 0.007 0.007 0.007 0.008 0.008 Notes: Dependent variable is weekly wages. Wages are relative to wages of Mexican-American Natives. Prefix “iaged” means immigration age dummy variable; “iaged1” is a dummy variable equal to 1 if individual was 1 year old when s/he immigrated to the U.S. The variable “gths” is a dummy variable indicating whether the individual graduated from High School. See notes to Table 1, Table 2, and text for description of the sample. 37 Table 4: The Relationship Between Age of Entry and Parent Quality Parental Characteristics High School Graduate Average Weekly Earnings Immigrant Children in 1990 N 117,113 97,569 Immigrated 6-10 yrs -.017 (.003) -.017 (.006) Immigrated 11-15 yrs -.041 (.004) -.074 (.008) Immigrated 16-20 yrs -.074 (.006) -.101 (.011) Mexican Immigrant Children in 1990 N 34,627 30,320 Immigrated 6-10 yrs -.018 (.005) -.003 (.010) Immigrated 11-15 yrs -.038 (.006) -.068 (.013) Immigrated 16-20 yrs -.041 (.009) -.042 (.018) Immigrant Children in 1970 N 8,325 7,732 Immigrated 6-10 yrs -.051 (.013) -.030 (.019) Immigrated 11-15 yrs -.064 (.016) -.036 (.024) Immigrated 16-20 yrs -.143 (.025) -.115 (.037) Mexican Immigrant Children in 1970 N 1,220 1,156 Immigrated 6-10 yrs -.038 (.024) .022 (.042) Immigrated 11-15 yrs -.011 (.030) .052 (.051) Immigrated 16-20 yrs -.044 (.045) -.031 (.077) Fluent in English 117,133 -.014 (.003) -.025 (.004) -.025 (.006) 34,627 -.013 (.005) -.012 (.006) -.024 (.009) – – – – – – – – Note: OLS regressions of parental characteristics on parental age, gender and age at which the children arrived in the U.S. Sample includes immigrant children age 0-21 years who were listed as the son or daughter of a household head who was also an immigrant. Parental information refers only to the parent who is listed as the household head. Source: Authors’ calculations based on samples from the 1970 and 1990 PUMS of the U.S. Censuses. 38 Table 5: Parental Characteristics of Mexican-American Children in 1970 Native Children Parental Characteristics Total Parent Born Outside U.S. 0.00 41.3 .09 6.9 .22 .03 .91 .06 .13 .16 .10 131 .04 8816 .09 1652 Immigrant Children (who arrived at 0-9 years) Parent Born In U.S. 1.00 38.4 .13 8.6 .41 .03 .91 .09 .10 .08 .09 136 .05 6368 .10 1758 Born in United States .79 .24 Age 39 41.8 Female .12 .10 Education 8.3 6.0 High School Graduate .37 .21 College Graduate .03 .04 Employed Last Year .91 .93 Professional/Manager .08 .05 Laborer (non-farm) .11 .13 Farm Laborer .10 .19 Service .10 .11 Average Weekly Earnings 135 104 Fraction Self-Employed .05 .04 Self-Employed Income 6816 2871 Fraction on Public Aid .10 .11 Public Aid Income 1737 1225 Years in the U.S. N 19,927 4,236 15,691 1,126 Note: These statistics are derived from information on the parents of Mexican-American children ages 0-21 in 1970 Census who were identified as the son/daughter of the household head. These children were either born in Mexico or born in the United States. Parental information here refers to the head of the household. 39 Table 6: Regression of Age of Entry on Individual Socio-Economic Outcomes (1) (2) Average Weekly High School Earnings Graduate coef se coef se (3) Fluent (4) Married (5) Receives Public Aid coef se coef se coef se Age of Entry 0-5 -0.028 0.012 -0.159 0.007 -0.121 0.007 0.040 0.007 -0.021 0.003 6-10 -0.068 0.011 -0.267 0.006 -0.217 0.007 0.063 0.006 -0.022 0.003 11-15 -0.147 0.007 -0.522 0.004 -0.438 0.004 0.119 0.004 -0.017 0.002 16-20 -0.218 0.005 -0.640 0.002 -0.513 0.003 0.118 0.003 -0.022 0.001 21+ -0.370 0.004 -0.667 0.002 -0.478 0.002 0.074 0.002 -0.026 0.001 Current Age 30-35 years 0.120 0.004 -0.002 0.002 -0.024 0.002 0.103 0.002 0.004 0.001 35-40 years 0.210 0.005 -0.005 0.002 -0.031 0.003 0.152 0.003 0.003 0.001 40-45 years 0.236 0.005 -0.028 0.003 -0.079 0.003 0.179 0.003 -0.001 0.001 Before 1968 0.092 0.008 0.088 0.004 0.096 0.004 -0.011 0.004 0.009 0.002 1990 Census -0.072 0.004 0.071 0.002 0.061 0.002 -0.102 0.002 0.005 0.001 Female -0.409 0.003 -0.006 0.001 -0.008 0.002 0.009 0.002 0.050 0.001 Constant 5.920 0.004 0.788 0.002 0.686 0.002 0.637 0.002 0.030 0.001 Note: These estimates are based on men and women from the pooled 1980-90 Census samples. Number of children is based on a sample of women only. The categories native and current age 25-30 are omitted. 40 (6) Disabl coef -0.031 -0.025 -0.028 -0.035 -0.047 0.018 0.034 0.067 0.010 0.003 -0.015 0.073 se Figure 1: Relative Wages of Mexican Immigrants by Age-at-Migration Returns to years in U.S. 0.100 0.000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 P e rc e n t W a g e g a p w it h n a tiv e M e x ic a n s -0.100 -0.200 -0.300 Unconditional High School Graduate English Fluency +HSG -0.400 -0.500 -0.600 -0.700 -0.800 -0.900 Age of Immigration Note: See Table 3 and discussion in text. 41 Figure 2: Relative Wages of Mexican Immigrants Born Between 1945 and 1955 by Age-at-Migration Returns to years in U.S. 0.2 Percent W age gap w ith native M exican-Am ericans 0.1 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 -0.1 -0.2 -0.3 Unconditional High School Graduate English Fluency +HSG -0.4 -0.5 -0.6 -0.7 -0.8 -0.9 Age of Immigration Notes: See Tables 1B and 2B. 42 Table A1: Relative Wages of Mexican Immigrants Born Between 1945 and 1955 (1) Coeff fluent gths iaged1 iaged2 iaged3 iaged4 iaged5 iaged6 iaged7 iaged8 iaged9 iaged10 iaged11 iaged12 iaged13 iaged14 iaged15 iaged16 iaged17 iaged18 iaged19 iaged20 iaged21 iaged22 iaged23 iaged24 iaged25 iaged26 iaged27 iaged28 iaged29 iaged30 iaged31 iaged32 iaged33 iaged34 iaged35 -0.014 -0.012 -0.012 0.010 -0.002 -0.019 0.003 0.010 -0.070 -0.053 -0.111 -0.118 -0.112 -0.127 -0.169 -0.177 -0.203 -0.219 -0.227 -0.218 -0.224 -0.276 -0.285 -0.302 -0.321 -0.350 -0.349 -0.398 -0.444 -0.472 -0.460 -0.478 -0.490 -0.509 -0.503 (2) S.D. 0.044 0.033 0.030 0.029 0.037 0.045 0.034 0.033 0.034 0.030 0.042 0.029 0.030 0.027 0.023 0.023 0.015 0.015 0.014 0.014 0.013 0.013 0.014 0.013 0.014 0.014 0.016 0.017 0.018 0.019 0.020 0.020 0.021 0.024 0.024 Coeff 0.306 0.024 0.013 0.010 0.037 0.029 0.013 0.049 0.041 -0.007 0.010 -0.025 -0.008 0.015 0.022 -0.024 -0.014 -0.041 -0.049 -0.058 -0.049 -0.060 -0.106 -0.118 -0.135 -0.154 -0.188 -0.187 -0.236 -0.278 -0.303 -0.298 -0.313 -0.323 -0.350 -0.336 (3) S.D. 0.005 0.041 0.032 0.030 0.028 0.036 0.044 0.034 0.033 0.033 0.029 0.041 0.029 0.030 0.027 0.022 0.023 0.015 0.015 0.014 0.015 0.014 0.013 0.014 0.014 0.014 0.014 0.016 0.018 0.018 0.019 0.020 0.020 0.021 0.024 0.024 Coeff 0.115 0.280 0.026 0.022 0.020 0.044 0.038 0.024 0.066 0.058 0.011 0.032 0.000 0.029 0.054 0.067 0.023 0.037 0.014 0.007 0.001 0.010 -0.002 -0.046 -0.058 -0.073 -0.093 -0.126 -0.125 -0.173 -0.215 -0.239 -0.234 -0.248 -0.259 -0.285 -0.272 S.D. 0.006 0.005 0.041 0.031 0.029 0.028 0.036 0.044 0.034 0.033 0.032 0.029 0.041 0.029 0.030 0.027 0.022 0.023 0.015 0.016 0.014 0.015 0.014 0.014 0.015 0.014 0.015 0.015 0.016 0.018 0.018 0.020 0.020 0.020 0.021 0.024 0.024 Notes: In Figure 2, we plot the coefficients in this table. Dependent variable is weekly wages. Prefix “iaged” means immigration age dummy variable; “iaged1” is a dummy variable equal to 1 if individual was 1 year old when s/he immigrated to the U.S. The variable “gths” is a dummy variable indicating whether the individual graduated from High School. See Tables 1B and 2B. The even numbered columns are the standard errors. 43
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