TY  - CHAP
AB  - Empirical evidence on the labor market performance of immigrants shows that migrant workers suffer from an initial disadvantage compared to observationally equivalent native workers, but that their wages subsequently tend to increase faster than native earnings. Economists usually explain these phenomena by spot markets for labor and investments into human capital. By contrast, this chapter proposes a contractual model. This alternative has important implications for integration policy, because it suggests investing into the transparency of foreign educational credentials. Also contrasting human capital theory, the model suggests that permanent migrants never earn higher wages than equally skilled temporary migrants.
VL  - 8
SN  - 978-0-85724-153-5, 978-0-85724-154-2/1574-8715
DO  - 10.1108/S1574-8715(2010)0000008013
UR  - https://doi.org/10.1108/S1574-8715(2010)0000008013
AU  - Schmidt Christoph M.
ED  - Gil S. Epstein
ED  - Ira N. Gang
PY  - 2010
Y1  - 2010/01/01
TI  - Chapter 7 Understanding the Wage Dynamics of Immigrant Labor: A Contractual Alternative
T2  - Migration and Culture
T3  - Frontiers of Economics and Globalization
PB  - Emerald Group Publishing Limited
SP  - 177
EP  - 191
Y2  - 2024/04/23
ER  -