A human capital model is specified to explain the skill composition of US immigration. A unique set of panel data (57 source countries and 15 annual observations) and a methodology not previously used to study a demographic phenomenon are employed to estimate the model. Coefficients on time-invariant variables are recovered by means of the Hausman-Taylor instrumental variable procedure, which yields considerably different results than the generalized least squares model.
ASJC Scopus subject areas
- Economics and Econometrics