Race, immigration, and the U.S. labor market

"It is generally expected that immigrants do not fare as well as the native-born in the U.S. labor market. The literature also documents that Blacks experience lower labor market outcomes than Whites. This paper innovates by studying the interaction between race and immigration. The study compares the labor market outcomes of four racial groups in the United States (Whites, Blacks, Asians, and Hispanics) interacted with their foreign born status, using the Integrated Public Use Micro Data Series data for the 2000 Census. Among women and for labor market outcomes such as labor force participation, employment, and personal income, the foreign born are doing worse than the native born from the same racial background, with the exception of Blacks. Among men, for labor force participation and employment, foreign-born Blacks are doing better than native Blacks. The paper tests different possible explanations for this "reversal" of the advantage of natives over immigrants among Blacks. It considers citizenship, ability in English, age at and time since arrival in the United States, as well as neighborhood effects, but concludes that none of these channels explains or modifies the observed reversal. "--World Bank web site.