Abstract
In this paper we estimate earnings functions for native born and foreign born white and non-white males in the English labour market, using data from the Quarterly Labour Force Survey. We correct for selectivity bias in the employment decision and control for the nonreporting of wage information. Importantly, we separate the returns to schooling and to potential experience received in the country of origin from those obtained after immigration. Our results highlight the importance of distinguishing between native born and foreign born males when investigating the labour market experience of ethnic minorities. Furthermore, the earnings performance amongst white immigrants varies considerably.