Ethnic Segregation and Immigrants’ Labor Market Outcomes: The Role of Education

Tian Lou; Tao Song

doi:10.2478/izajole-2023-0005

Figures & Tables

Differences-in-Differences Trends, Method 1.

Differences-in-Differences Trends, Method 2.

Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model, Earnings Results

Dependent variable: log earning

	(1)	(2)	(3)	(4)	(5)	(6)
ISO	−0.217 (0.469)	−0.233 (0.436)	−0.156 (0.417)	0.438 (1.721)	−0.498 (1.599)	−0.582 (1.556)
ISO×S¯ ISO \times \bar S	-	-	-	−0.039 (0.187)	0.059 (0.175)	0.061 (0.170)
S¯ \bar S	-	-	-	0.055^*** (0.013)	0.049^*** (0.012)	0.023^* (0.012)
S	-	-	0.028^*** (0.002)	-	-	0.028^*** (0.002)
+characteristic control	No	Yes	Yes	No	Yes	Yes
F-test	-	-	-	0.04	0.06	0.07
P-value	-	-	-	0.960	0.943	0.933
N	102,475

Robustness Test, Triple Differences and Triple Interactions Model (Centered), Employment Results

Dependent variable: if employed, =1

	(1)	(2)	(3)	(4)
	Male	Female	Arrived at the U.S. after age 21 or later	Arrived at the U.S. after age 23 or later
ISO	0.134 (0.304)	−0.346 (0.464)	−0.119 (0.280)	−0.133 (0.332)
ISO × S	−0.004 (0.016)	−0.001 (0.029)	0.039^** (0.018)	0.030 (0.019)
ISO×S¯ ISO \times \bar S	0.038 (0.065)	0.006 (0.113)	0.013 (0.069)	0.115 (0.077)
ISO×S¯H×S ISO \times \bar SH \times S	0.034 (0.046)	0.068 (0.057)	0.036 (0.051)	0.029 (0.065)
ISO×S¯L×S ISO \times \bar SL \times S	0.001 (0.004)	−0.001 (0.007)	0.009^** (0.004)	0.007 (0.005)
S¯×S \bar S \times S	0.001^*** (0.000)	−0.001 (0.000)	0.001^** (0.000)	0.000 (0.000)
S¯ \bar S	−0.005 (0.005)	−0.007 (0.009)	−0.009 (0.006)	−0.011 (0.007)
S	0.005^*** (0.001)	0.004^*** (0.001)	0.005^*** (0.001)	0.005^*** (0.001)
F-test	0.67	0.62	1.41	2.09
P-value	0.647	0.686	0.219	0.063
N	83,164	42,838	65,149	40,642

Mechanisms and Heterogeneity Tests, Employment Results

Dependent variable: if employed, =1

	Baseline	English insufficiency	Years in the U.S.
ISO	−0.018 (0.249)	−0.028 (0.249)	0.024 (0.251)
ISO × S	0.001 (0.018)	−0.000 (0.018)	−0.001 (0.018)
ISO×S¯ ISO \times \bar S	0.025 (0.056)	0.031 (0.056)	0.027 (0.056)
ISO×S¯H×S ISO \times \bar SH \times S	0.042 (0.037)	0.042 (0.037)	0.043 (0.038)
ISO×S¯L×S ISO \times \bar SL \times S	0.002 (0.004)	0.001 (0.004)	0.001 (0.004)
ISO × insufEng	-	0.045 (0.043)	-
insufEng	-	−0.021^*** (0.004)	-
ISO × Years in US	-	-	−0.006 (0.007)
Years in US	-	-	0.003^*** (0.001)
F-test	0.68	0.65	0.57
P-value	0.635	0.664	0.721
N	127,769

Cutler et al_ (2008) Model, Earning Results

Dependent Var: log earning	ISO Model		ISO, ISO×S¯ {\boldsymbol{ISO}} \times {\boldsymbol{\bar S}} Model

	(1)	(2)	(3)		(4)

	OLS+FE	IV	OLS+FE		IV

	ISO	ISO	ISO	ISO×S¯ {\bf{ISO}} \times {\boldsymbol{\bar S}}	ISO	ISO×S¯ {\bf{ISO}} \times {\boldsymbol{\bar S}}
Cutler et al. (2007)	0.250 (0.512)	2.963^** (1.525)	2.965^* (1.600)	−0.331^* (0.183)	−14.021^*** (5.212)	1.637^*** (0.568)
N	22,564	22,564	22,564		22,564

2000, 60 groups (age 20–30)	−0.280^** (0.142)	1.557 (0.971)	−2.034 (5.157)	0.229 (0.356)	−3.977 (3.118)	0.361 (0.221)
N	97,861

2010, 74 groups (age 20–30)	0.256^* (0.143)	1.048 (0.703)	−0.425 (0.547)	0.062 (0.049)	5.618 (8.350)	−0.319 (0.596)
N	98,672

2000, 60 groups (age 20–30, arrived after age 17)	−0.361^* (0.187)	−0.308 (1.667)	1.300^* (0.723)	−0.162^** (0.067)	132.097 (4536.585)	−8.553 (293.454)
N	53,690

2010, 74 groups (age 20–30, arrived after age 17)	0.304 (0.203)	−0.277 (0.988)	0.051 (0.767)	0.023 (0.070)	36.310 (105.392)	−2.641 (7.558)
N	51,994

Additional Robustness Tests Results

Dependent variable: log earning

	Baseline		Drop blacks		Drop English speakers
ISO	0.415 (0.847)	0.327 (0.837)	0.656 (0.863)	0.558 (0.852)	1.401 (0.904)	1.324 (0.893)
ISO × S	−0.160^* (0.083)	−0.216^** (0.096)	−0.174^** (0.087)	−0.235^** (0.103)	−0.178^** (0.086)	−0.227^** (0.098)
ISO×S¯ ISO \times \bar S	0.117 (0.169)	0.098 (0.168)	0.147 (0.171)	0.127 (0.170)	0.359^** (0.176)	0.344^** (0.174)
ISO×S¯×S ISO \times \bar S \times S	−0.036^* (0.018)	-	−0.039^** (0.019)	-	−0.041^** (0.019)	-
ISO×S¯H×S ISO \times \bar SH \times S	-	0.505^*** (0.138)	-	0.546^*** (0.142)	-	0.511^*** (0.143)
ISO×S¯L×S ISO \times \bar SL \times S	-	−0.048^** (0.021)	-	−0.052^** (0.022)	-	−0.051^** (0.022)
F-test	1.10	3.09	1.24	3.39	2.32	4.03
P-value	0.354	0.009	0.293	0.005	0.055	0.001
N	102,475		99,939		93,251

Mechanisms and Heterogeneity Tests, Earning Results

Dependent variable: log earning

	Baseline	English insufficiency	Years in the U.S.
ISO	0.327 (0.837)	0.320 (0.843)	0.673 (0.809)
ISO × S	−0.216^** (0.096)	−0.247^*** (0.090)	−0.244^*** (0.094)
ISO×S¯ ISO \times \bar S	0.098 (0.168)	0.132 (0.171)	0.115 (0.164)
ISO×S¯H×S ISO \times \bar SH \times S	0.505^*** (0.138)	0.516^*** (0.139)	0.544^*** (0.141)
ISO×S¯L×S ISO \times \bar SL \times S	−0.048^** (0.021)	−0.056^*** (0.020)	−0.057^*** (0.021)
insufEng		−0.183^*** (0.012)	-
ISO × insufEng	-	0.046 (0.131)	-
Years in US		-	0.037^*** (0.002)
ISO × Years in US	-	-	−0.041^** (0.017)
F-test	3.09	3.69	3.85
P-value	0.009	0.003	0.002
N	102,475

Balancing Tests, Triple Differences Model

Dependent Variable: Isolation Index × 1000

	(1)	(2)
Education	−0.007 (0.007)	0.042 (0.060)
Age	−0.006 (0.006)	0.014 (0.021)
Male	0.053 (0.042)	0.144 (0.127)
Black	−0.285 (0.313)	−0.000 (0.870)
Other Nonwhite	0.088 (0.215)	−0.026 (0.395)
Age × Education	-	−0.002 (0.002)
Male × Education	-	−0.008 (0.011)
Black × Education	-	−0.022 (0.060)
Other Nonwhite × Education	-	0.009 (0.027)
F-test	1.05	0.45
P-value	0.385	0.771
N	102,475

Balancing Tests, MSA and Group Fixed Effects vs_ Triple Differences Model

Panel 1. Dependent Variable: Isolation Index × 1000

	MSA FE, Group FE		Triple Differences
Education	−0.607^*** (0.108)	−0.171 (0.449)	−0.007 (0.007)	0.042 (0.060)
Age	0.006 (0.061)	0.402^** (0.196)	−0.006 (0.006)	0.014 (0.021)
Male	−0.637^** (0.290)	−3.671^*** (1.239)	0.053 (0.042)	0.144 (0.127)
Black	1.682 (1.793)	1.804 (5.049)	−0.285 (0.313)	−0.000 (0.870)
Other Nonwhite	0.506 (1.047)	−4.596 (3.064)	0.088 (0.215)	−0.026 (0.395)
Age × Education	-	−0.038^** (0.017)	-	−0.002 (0.002)
Male × Education	-	0.262^** (0.109)	-	−0.008 (0.011)
Black × Education		−0.028 (0.342)	-	−0.022 (0.060)
Other Nonwhite × Education	-	0.392^* (0.210)	-	0.009 (0.027)
F-test	7.76	6.26	1.05	0.45
P-value	0.000	0.000	0.385	0.771
N	104,555		102,475

Balancing Tests for Isolation Index and Cutler et al_ (2007) Instrument Variable

Dependent Variable:	Isolation Index × 1000		Mean Years of Immigrant Group g in MSA s since immigration

	(1)	(2)	(3)	(4)

	2000	2010	2000	2010
Education	−0.663^*** (0.137)	−0.466^*** (0.110)	0.002 (0.005)	0.007 (0.005)
Age	−0.037 (0.056)	0.072 (0.046)	0.020^*** (0.005)	0.021^*** (0.004)
Male	−0.518 (0.343)	−0.315 (0.357)	−0.103^*** (0.029)	−0.157^*** (0.031)
Black	1.573 (2.385)	−1.077 (2.571)	−0.113 (0.270)	−0.209 (0.355)
Other Nonwhite	−1.177 (1.325)	1.382 (1.497)	−0.370^** (0.157)	−0.530^** (0.197)
F-test	6.48	4.07	6.71	10.53
P-value	0.000	0.001	0.000	0.000
N	53,690	51,994	53,690	51,994

Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model, Employment Results

Dependent variable: if employed, =1

	(1)	(2)	(3)	(4)	(5)	(6)
ISO	−0.106 (0.151)	−0.109 (0.152)	−0.092 (0.153)	0.014 (0.514)	−0.061 (0.512)	−0.068 (0.512)
ISO×S¯ ISO \times \bar S	-	-	-	−0.014 (0.050)	−0.006 (0.050)	−0.005 (0.050)
S¯ \bar S	-	-	-	−0.001 (0.005)	−0.001 (0.005)	−0.004 (0.005)
S	-	-	0.003^*** (0.000)	-	-	0.003^*** (0.000)
+characteristic control	No	Yes	Yes	No	Yes	Yes
+individual education control	No	No	Yes	No	No	Yes
F-test	-	-	-	0.37	0.31	0.31
P-value	-	-	-	0.690	0.736	0.736
N	127,769

Triple Differences and Triple Interactions Model (Centered), Earnings Results

Dependent variable: log earning

	(1)	(2)	(3)	(4)
ISO	−0.136 (0.414)	0.375 (0.846)	0.415 (0.847)	0.327 (0.837)
ISO × S	−0.174^*** (0.021)	−0.029 (0.023)	−0.160^* (0.083)	−0.216^** (0.096)
ISO×S¯ ISO \times \bar S	-	0.109 (0.169)	0.117 (0.169)	0.098 (0.168)
ISO×S¯×S ISO \times \bar S \times S	-	-	−0.036^* (0.184)	-
ISO×S¯H×S ISO \times \bar SH \times S	-	-	-	0.505^*** (0.138)
ISO×S¯L×S ISO \times \bar SL \times S	-	-	-	−0.048^** (0.021)
S¯×S \bar S \times S	-	0.010^*** (0.001)	0.011^*** (0.001)	0.011^*** (0.001)
S¯ \bar S	-	0.007 (0.012)	0.006 (0.012)	0.007 (0.012)
S	0.040^*** (0.002)	0.063^*** (0.002)	0.066^*** (0.002)	0.065^*** (0.002)
F-test	33.97	0.69	1.10	3.09
P-value	0.000	0.559	0.354	0.009
N	102,475

Discrete Education Measure, Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model

Dependent variable: if employed, =1

	(1)	(2)	(3)	(4)	(5)	(6)
ISO	−0.106 (0.151)	−0.109 (0.152)	−0.093 (0.151)	0.300 (0.321)	0.293 (0.320)	0.279 (0.319)
ISO × %HS	-	-	-	−1.550^* (0.906)	−1.540^* (0.912)	−1.521^* (0.909)
ISO × %Some_Coll	-	-	-	1.136 (1.578)	0.798 (1.621)	0.856 (1.607)
ISO × %College	-	-	-	−0.136 (0.606)	0.030 (0.607)	0.064 (0.604)
%High School	-	-	-	0.108^** (0.049)	0.110^** (0.049)	0.096^** (0.049)
%Some College	-	-	-	0.124^** (0.052)	0.135^** (0.052)	0.103^** (0.052)
%College	-	-	-	0.036 (0.046)	0.035 (0.046)	−0.002 (0.047)
High School	-	-	0.014^*** (0.003)	-	-	0.014^*** (0.003)
Some College	-	-	0.033^*** (0.004)	-	-	0.033^*** (0.004)
College	-	-	0.039^*** (0.004)	-	-	0.039^*** (0.004)
+characteristic control	No	Yes	Yes	No	Yes	Yes
F-test	-	-	-	1.01	1.01	1.03
P-value	-	-	-	0.402	0.400	0.388
N	127,769

Discrete Education Measure, Triple Differences and Triple Interactions Model (Centered)

Dependent variable: if employed, =1

	(1)	(2)	(3)
ISO	−0.039 (0.153)	0.218 (0.324)	0.379 (0.337)
ISO × HS	−0.082^* (0.048)	−0.050 (0.051)	−0.366^* (0.221)
ISO × Some Coll	−0.083 (0.073)	−0.032 (0.079)	−0.374 (0.367)
ISO × College	−0.190^*** (0.061)	−0.153^** (0.073)	−0.549^* (0.311)
ISO × %HS	-	−1.309 (0.950)	−1.949^* (1.027)
ISO × %Some Coll	-	0.928 (1.680)	1.610 (1.985)
ISO × %Coll	-	0.248 (0.602)	−0.256 (1.018)
ISO × %HS × HS	-	-	1.328^* (0.717)
ISO × %HS × Some Coll	-	-	0.762 (1.146)
ISO × %HS × Coll	-	-	0.850 (0.947)
ISO × %Some Coll × HS	-	-	−1.097 (1.066)
ISO × %Some Coll × Some Coll	-	-	0.534 (1.742)
ISO × %Some Coll × Coll	-	-	−0.437 (1.572)
ISO × %Coll × HS	-	-	0.132 (0.695)
ISO × %Coll × Some Coll	-	-	0.104 (1.119)
ISO × %Coll × Coll	-	-	0.104 (1.119)
%HS × HS	-	−0.010 (0.039)	−0.060 (0.050)
%HS × Some Coll	-	−0.014 (0.050)	−0.067 (0.059)
%HS × Coll	-	0.020 (0.048)	−0.040 (0.058)
%Some Coll × HS	-	0.018 (0.051)	0.049 (0.062)
%Some Coll × Some Coll	-	0.035 (0.056)	0.028 (0.067)
%Some Coll × Coll	-	0.044 (0.053)	0.043 (0.063)
%Coll × HS	-	0.046^* (0.027)	0.036 (0.031)
%Coll × Some Coll	-	0.045 (0.032)	0.027 (0.034)
%Coll × Coll	-	0.052^* (0.027)	0.017 (0.034)
%HS	-	0.073 (0.052)	0.106^* (0.056)
%Some Coll	-	0.085 (0.066)	0.068 (0.072)
%Coll	-	−0.050 (0.051)	−0.040 (0.052)
High School	0.021^*** (0.004)	0.016 (0.015)	0.029 (0.019)
Some College	0.040^*** (0.005)	0.032 (0.021)	0.054^** (0.026)
College	0.049^*** (0.005)	0.028 (0.021)	0.058^** (0.026)
F-test	3.09	1.36	1.44
P-value	0.015	0.219	0.115
N		127,769

Robustness Tests, Triple Differences and Triple Interactions Model (Centered)

Dependent variable: log earning

	(1)	(2)	(3)	(4)
	Male	Female	Arrived at the U.S. after age 21 or later	Arrived at the U.S. after age 23 or later
ISO	−0.945 (1.146)	1.962 (1.618)	−0.572 (1.001)	0.294 (1.262)
ISO × S	−0.281^*** (0.095)	−0.108 (0.082)	−0.179 (0.115)	−0.158 (0.129)
ISO×S¯ ISO \times \bar S	−0.124 (0.221)	0.449 (0.329)	−0.187 (0.212)	0.115 (0.281)
ISO×S¯H×S ISO \times \bar SH \times S	0.554^*** (0.156)	0.439^* (0.233)	0.513^*** (0.183)	0.368^* (0.222)
ISO×S¯L×S ISO \times \bar SL \times S	−0.060^*** (0.021)	−0.035^* (0.020)	−0.038 (0.025)	−0.033 (0.029)
S¯×S \bar S \times S	0.010^*** (0.001)	0.012^*** (0.001)	0.010^*** (0.001)	0.009^*** (0.001)
S¯ \bar S	−0.011 (0.015)	0.014 (0.025)	−0.001 (0.019)	−0.010 (0.025)
S	0.060^*** (0.003)	0.071^*** (0.003)	0.065^*** (0.003)	0.063^*** (0.003)
F-test	3.68	1.88	1.73	0.73
P-value	0.003	0.095	0.123	0.600
N	69,166	31,718	51,828	32,188

Balancing Tests with Assimilation Measures, Triple Differences Model

Dependent Variable: Isolation Index × 1000

	(1)	(2)
Education	−0.011 (0.007)	0.017 (0.061)
Age	−0.002 (0.008)	0.008 (0.023)
Male	0.051 (0.042)	0.142 (0.129)
Black	−0.278 (0.313)	−0.051 (0.867)
Other Nonwhite	0.097 (0.215)	0.023 (0.409)
English Insufficiency	−0.132^*** (0.050)	−0.255^* (0.154)
Years in the U.S.	−0.012 (0.008)	0.007 (0.019)
Age × Education	-	−0.001 (0.002)
Male × Education	-	−0.008 (0.011)
Black × Education	-	−0.017 (0.060)
Other Nonwhite × Education	-	0.006 (0.028)
English Insufficiency × Education	-	0.012 (0.014)
Years in the U.S. × Education	-	−0.002 (0.002)
F-test	1.73	0.064
P-value	0.097	0.695
N	102,475

Descriptive Statistics

	Earning regression sample			Employment regression sample

	N	Mean	SD	N	Mean	SD
Log earnings	104,577	9.656	0.738	-	-	-
Employment	-	-	-	129,966	0.919	0.273
Isolation index	8,149	0.014	0.021	8,874	0.014	0.020
Group average education	8,149	13.136	2.241	8,874	13.153	2.241
Immigrant share	8,149	0.004	0.015	8,874	0.004	0.014
Education	104,577	11.023	4.170	129,966	10.922	4.218
Age	104,577	26.395	2.829	129,966	26.330	2.874
Male	104,577	0.680	0.467	129,966	0.655	0.475
Married	104,577	0.383	0.486	129,966	0.385	0.486
Have children	104,577	0.301	0.459	129,966	0.305	0.461
White	104,577	0.121	0.326	129,966	0.121	0.326
Black	104,577	0.025	0.157	129,966	0.026	0.159
Asian	104,577	0.182	0.386	129,966	0.176	0.381
Hispanic	104,577	0.672	0.469	129,966	0.677	0.468

Triple Differences and Triple Interactions Model (Centered), Employment Results

Dependent variable: if employed, =1

	(1)	(2)	(3)	(4)
ISO	−0.089 (0.153)	−0.009 (0.249)	−0.012 (0.249)	−0.018 (0.249)
ISO × S	−0.013^** (0.005)	−0.005 (0.006)	0.005 (0.017)	0.001 (0.018)
ISO×S¯ ISO \times \bar S	-	0.027 (0.056)	0.026 (0.056)	0.025 (0.056)
ISO×S¯×S ISO \times \bar S \times S	-	-	0.003 (0.004)	-
ISO×S¯H×S ISO \times \bar SH \times S	-	-	-	0.042 (0.037)
ISO×S¯L×S ISO \times \bar SL \times S	-	-	-	0.002 (0.004)
S¯×S \bar S \times S	-	0.001^*** (0.000)	0.000^** (0.000)	0.000^** (0.000)
S¯ \bar S	-	−0.005 (0.004)	−0.005 (0.004)	−0.005 (0.004)
S	0.004^*** (0.000)	0.005^*** (0.001)	0.005^*** (0.001)	0.005^*** (0.001)
F-test	2.97	0.49	0.57	0.68
P-value	0.052	0.687	0.686	0.635
N	127,769

Ethnic Segregation and Immigrants’ Labor Market Outcomes: The Role of Education

Figures & Tables

Figure B.1

Figure B.2

Figure B.3

Figure B.4

Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model, Earnings Results

Robustness Test, Triple Differences and Triple Interactions Model (Centered), Employment Results

Mechanisms and Heterogeneity Tests, Employment Results

Cutler et al_ (2008) Model, Earning Results

Additional Robustness Tests Results

Mechanisms and Heterogeneity Tests, Earning Results

Balancing Tests, Triple Differences Model

Balancing Tests, MSA and Group Fixed Effects vs_ Triple Differences Model

Balancing Tests for Isolation Index and Cutler et al_ (2007) Instrument Variable

Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model, Employment Results

Triple Differences and Triple Interactions Model (Centered), Earnings Results

Discrete Education Measure, Triple differences, ISO Model and ISO×S¯ ISO \times \bar S Model

Discrete Education Measure, Triple Differences and Triple Interactions Model (Centered)

Robustness Tests, Triple Differences and Triple Interactions Model (Centered)

Balancing Tests with Assimilation Measures, Triple Differences Model

Descriptive Statistics

Triple Differences and Triple Interactions Model (Centered), Employment Results

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