We develop a model that accounts for several stylized facts about the evolution of immigrant earnings. First, it implies that new immigrants learn less than natives with a similar level of schooling. Second, it implies that the earnings gap narrows over time. Finally, the model also implies that the size of earnings gap between new immigrants and natives as well as the rate at which the gap decreases over time, depend on the individual’s country of origin.

In addition to establishing some theoretical results, we develop a calibrated version of the model and we show that it is broadly consistent with the evidence.

*Paper jointly written with Ananth Seshadri and Yongseok Shin

Rodolfo Manuelli, Ph.D. in Economics, University of Minnesota. James S. McDonnell Distinguished University Professor, Washington University in St. Louis.
His research interests are Economic Growth and Development Economics, Macro and Monetary Economics.

El seminario será dictado en inglés, sin traducción simultánea.