The skill transferability of high-skilled US immigrants

Abstract

Using the 2000 US Census data, we explored the effect of international transferability of skills on the earnings of high-skilled US immigrants. We confirmed that education and labour market experience received by immigrants from Japan and English-speaking developed countries before migrating have the greatest transferability; immigrants from non-English-speaking and Less Developed Countries (LDCs) make a greater investment in US-specific skills after arrival and earn a salary commensurate with the acquired skill level. Nevertheless, high-skilled workers from English-speaking developed countries still receive higher earnings, other things equal. We explore factors that influence this earnings differential.

Notes

¹They are (1) management; (2) business and financial operations; (3) computer and mathematical sciences; (4) architecture and engineering; (5) life, physical and social sciences; (6) community social services; (7) legal; (8) education, training and library; (9) arts, design, entertainment, sports and media; and (10) health care.

²This is measured by using Betts and Loftstrom (1998) approach ‘Assuming individuals are in school from age 6, if an immigrant migrated at age 6 or younger, then all schooling took place in the US’.

³This is computed as total years of schooling minus the years of pre-migration education.

⁴Previous studies (e.g. Chiswick, 1977) have shown that immigrants in the US South region would be at a disadvantage in earnings.

⁵The variable is set equal to 1 for immigrants who report their English ability as ‘speak only English’ or speak ‘very well’, and it is set equal to 0 for those who speak ‘well’, ‘not well’ or ‘not at all’.

⁶Intra-company transferee is defined by the USCIS as an alien who seeks to enter the United States temporarily to work for the same employer in a capacity that is primarily managerial, executive or involves special knowledge.