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A common perception about immigrant assimilation is that association with natives necessarily speeds the process by which immigrants become indistinguishable from natives. Using 2000 Census data, this paper casts doubt on this presumption by examining the effect of an immigrant's marriage to a native, a measure of social integration, on dropout rates of children from these marriages. Although second-generation immigrants with one native parent generally have lower dropout rates than those with two foreign-born parents, the relationship reverses when steps are taken to control for observable and unobservable background characteristics. That is, immigrants that marry natives have children that are more likely to drop out of high school than immigrants that marry other immigrants. Moreover, gender differences in the effect of marriage to a native disappear in specifications which control for the endogeneity of the marriage decision.

The purpose of this paper is to test whether marriage to a native affects the probability that an immigrant will be employed.

Utilizing 2000 US Census data, first the effect of cross‐nativity marriages on employment is examined using an ordinary least squares model. To deal with endogeneity concerns, a two‐stage least squares model instrument for marriage to a native using local marriage market conditions is then estimated.

Results from an ordinary least squares model controlling for the usual measures of human capital and immigrant assimilation suggest that marriage to a native increases an immigrant's employment probability by approximately four percentage points. When taking into account the endogeneity of the intermarriage decision, marriage to a native increases the probability of employment by about 11 percentage points.

Although various mechanisms are discussed through which marriage to a native can increase employment probabilities of immigrants, the authors do not disentangle these mechanisms. This is an area ripe for future research.

It is shown that, from a theoretical perspective, marriage to a native has an ambiguous effect on immigrant employment rates. The empirical answer to this question provides insights into the assimilation process, which may prove useful in designing optimal immigration policies.

Pay varies across individuals. Some variation is endemic to a country's institutions including a country's level of development and its technological infrastructure. Some variation is based on differences in individual attributes, particularly an individual's ability to acquire human capital. Finally, some variation is based on incentives instigated by the government, by one's employer, or by one's family. These incentives often operate indirectly by influencing educational choices, labor force participation, and even cohabitation and marital arrangements. This volume contains eight articles on aspects of the distribution of income. One deals with technology change and the distribution of earnings, two deal with internal labor markets, four deal with incentives that motivate work related behavior, and finally one deals with immigrant labor market success.

In many countries today, immigrants and other distinct ethnic minorities experience high unemployment, low employment rates, lower education levels, and lesser earnings in comparison to natives. While differences in the labor market attachment and performance of immigrants can be partially explained by human capital, time spent in the host country, nationality or country of origin, and other demographics, there is still a native–immigrant gap that remains to be explained. Studying ethnic identity is not a trivial task. Complex issues of identification and measurement can surface along the way.