Wage Inequality Among Immigrants

Abstract

This study investigates the dynamics of wage inequality among immigrants in the United States, a topic often overshadowed by discussions on the effects of immigration on native workers. Utilizing a unique dataset specifically created for this research, we calculate wage inequality using the Gini coefficient and Atkinson index, offering a nuanced analysis of trends across education levels, industries, and immigration policies. The findings reveal a sharp rise in wage inequality among immigrants post-2013, surpassing overall wage inequality in the United States for the first time in 2023. High-skilled sectors, particularly IT, demonstrate a stabilizing effect on wage disparity, while low-skilled immigrants face growing wage gaps exacerbated by stringent visa policies and economic disruptions, such as the COVID-19 pandemic. Our econometric analysis highlights the dual role of minimum wage policies, which increase wage inequality in the short term but reduce it over the long run. This study emphasizes the need for inclusive immigration policies that address within-group disparities and enhance equity in the labor market.