Immigration, education and employment - Does education affect assimilation of migrants in the labor market?

University essay from Göteborgs universitet/Institutionen för nationalekonomi med statistik

Abstract: The aim of this paper is to analyze how the level of education affects the probability of being employed for immigrants in the United States (U.S.) during the period 2000-2017. To be able to estimate the effect of education, we use census records from IPUMS USA that allow us to identify migrants, their employment status and level of education, together with other demographics. The analysis is made through regressions in STATA, using a Linear Probability Model. The results imply that education has a positive and significant effect on the probability of being employed. However, other factors such as the race or the birthplace of the immigrants, affect the likelihood of being employed to a greater extent than education. Additionally, we document the heterogeneous effects of education according to race and birthplace. That means, we find significant differences in the magnitude of the education effect within the group of immigrants. Finally, we present the returns of education for migrants. Our results are in line with previous research within the field of immigration economics.

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