The impact of host-country schooling on earnings - A study of male immigrants in the United States

Immigrants in the United States who acquire U.S. schooling earn higher wages than other immigrants. Using data from the U.S. censuses and the National Longitudinal Survey of Youth, we show that this wage advantage results from both greater educational attainment and higher returns to education. The higher returns are not the consequence of ability bias or greater English proficiency of those who acquire U.S. schooling. Returns to years of non-U.S, education are higher for immigrants who complete their schooling in the United States, consistent with the view that U S. schooling upgrades or certifies education received in the source country. For those without U.S. schooling, returns are higher for immigrants from highly developed countries and countries for which English is an official language.