An Analysis of the Determinants of the Economic Integration of Immigrants: A Multi-Dimensional Approach

Shannon Gleeson, University of California, Berkeley

One of the key issues surrounding international migration is the prospect of economic integration for migrants in their destination communities. Previous research tends to focus on a single outcome variable such as employment status or earnings. However, this paper contends that a multi-faceted approach may be preferable. By considering five different outcome variables (employment status, poverty status, socio-economic index, occupational income score, and occupational category), this paper proposes a multi-stage model of immigrant economic integration. Through the use of regression models (including OLS, logistic regression, and multinomial logistic regression), this analysis finds evidence that in addition to individual human capital attributes, socialization in the U.S. education system, as well as the labor market and policy environment are also significant. Furthermore, the evidence suggests that an immigrant’s mode of entry largely determines their level of economic integration, and mediates their ability to transfer their human capital into labor market rewards.