Abstract:
The aim of this thesis is to examine the effect that immigrants have on the wagegap
in the United States. Immigrants have been defined in this research as individuals
who have been born outside the United States whereas non-immigrants are individuals
who are born in the United States and thus have automatic citizenship. The conceptual
model has been divided into three component parts consisting of the Individual
segment, the Structural segment and the Discrimination/Disadvantaged Groups
segment. Various literatures on the subject of immigrants and the wages they earn
argue that there is devaluation and sorting that takes place.
Data for this thesis has been obtained from the 2008 Current Population Survey
(CPS). An univariate and bivariate analysis was performed which showed that, among
other variables, immigrants are more likely to be younger and have fewer years of
education than non-immigrants. Data from this analysis also showed that immigrants
are more likely to have at least a High School diploma. An Ordinary Least Squares
(OLS) Regression analysis was also performed for this thesis. The resultant data shows
that immigrants indeed earn fewer wages than non-immigrants. In addition, the data
shows that the Individual model segment has a greater effect on the immigrants groups
than it does for the non-immigrants.