The primary objectives of this proposal are to understand how immigrants and firms interact in the economy and how this interaction affects both immigrant success and native-born displacement.
Our specific aims are: (1) To describe the rate of wage assimilation exploiting the panel nature of the newly developed longitudinal employer-employee matched data-sets (in the LEHD project at Census). Does the rate of wage convergence vary by date of arrival? Does the rate of convergence vary by country of origin? (2) To explain what factors are associated with the rate of wage convergence of immigrants? Do the characteristics of firms that employ immigrants help explain wage assimilation? For example, does the concentration of workers from the immigrant's home country, the size of firm and the other productive characteristics of firms change the rate of wage convergence? Do employment choices that immigrants make upon arrival in the U.S. affect the long-term prospects of immigrants? (3) To explore the relative success or failure of native-born workers to respond to competition from immigrant workers? How much do worker characteristics such as the level of human capital or tenure in an industry matter? How much do firm choices such as changes in the types of technology or worker mix matter for the impact of immigrant flows on native born workers, (4) To describe the displacement of native-born workers from firms. When a firm begins to hire immigrants which native-born workers exit the firm? For example is it older or younger workers, workers with more or less tenure with the firm? (5) To describe what happens to displaced native-born workers. Do they work for other firms in related industries? Do they migrate to other locations?