[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2017 [Issue:] 389
Immigrants who start with low earnings, such as family-based immigrants, experience higher earnings growth than immigrants who are recruited for specific jobs (employment-based immigrants). This occurs because family-based immigrants with lower initial earnings invest in human capital at higher rates than natives or employment-based immigrants. Therefore, immigrants who start at low initial earnings invest in new human capital that allows them to respond to the ever-changing needs of the host country’s economy.
immigrant selection immigration policy earnings growth human capital investment