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The E ffect of H ome - country Gender Status on the Labor Supply of Immigrants

The E ffect of H ome - country Gender Status on the Labor Supply of Immigrants. Yunsun Huh University of Wisconsin, Green Bay. November 4 th , 20 11. Motivation. Women have a different socio-economic position from men and this difference varies across different cultures and institutions

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The E ffect of H ome - country Gender Status on the Labor Supply of Immigrants

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  1. The Effect of Home-country Gender Status on the Labor Supply of Immigrants Yunsun Huh University of Wisconsin, Green Bay November 4th, 2011

  2. Motivation • Women have a different socio-economic position from men and this difference varies across different cultures and institutions • Huh, Y.(2011) : The Effect of Home-country Gender Status on Labor Market Success of Immigrants. • The differential effect of gender status in the home country on wages of female and male immigrants in the U.S.

  3. Question & Objective • How cultural background (e.g. gender status) affect women’s decision for LFP and LS different from men? • Analyze dynamics of labor supply for women immigrants relative to men across different countries of orign.

  4. Question & Objective • How does cultural background (i.e. gender status) affect women’s labor participation different from men? • Analyze the dynamics of labor supply behavior of women immigrants relative to men

  5. Hypothesis 1 • Women from more egalitarian societies have more opportunities to work than women from less egalitarian societies • More: confidence, positive attitude

  6. Hypothesis 2 • Women from more egalitarian societies have less opportunities to work than women from less egalitarian societies • Less : more challenges, more aggressive for job searching, deal with inferior working condition etc.

  7. Prior Literature • Labor & Immigration Literature • No consideration of the impact of home-country conditions on the labor supply of immigrants women • Labor Supply literature • Focuses on gender wage gap or fertility behavior: Antecol (2001, 2003), Fernandez and Fogli(2006), Latt and Sevilla-Sanz (2011) • Immigration literature • Focuses on human capital factors or female labor force activity in home country :Blau, Kahn, and Papps (2008)

  8. Contribution • Consider both women & men • Add gendered perspective on why origins of immigrants matter • Provide insights for Policy • Findings: • Higher gender equality increases labor supply of both sexes • A greater effect of gender status on women • Higher development status increases reservation wages of both sexes

  9. Data source and description • Individual Immigrant Data: IPUMS-USA(The Integrated Public Use Microdata Series), 1 % sample of the 2006 ACS (American Community Survey) • Restricted sample: Foreign born Individuals between 25 & 65, who arrived in the U.S over age of 18.

  10. Data source and description • Home country gender status : GDI (Gender Development Index) GEM (Gender Empowerment Measure) : Human Development Reports, UN • 42 countries selected: - 2001GDI &1999GEM: both based on1999observations - Enough observations of female immigrant workers in U.S.

  11. Data source and description • GDI (Gender Development Index) :An indication of the standard of living in a country • HDI(Human Development Index) modified for gender inequality • Health, education, and a decent standard of living.

  12. Data source and description • GEM (Gender Empowerment Measure) :A measure of the gender inequalityof opportunities in a country. • Economic and political participation & decision making

  13. Approach • Labor Market Participation: binary logit regressionwith GEM and GDI • Labor Supply Behavior : OLS only for labor market participants including zero income earners with GEM and GDI • Separate sample group by sex • Robustness test (likelihood ratio test, multicollinearity, heteroskedasticity, etc.)

  14. Bench Mark Model • Labor Supply • Labor force participation : Binary Dependent variable • Controlled for the number of children under5, family size, education, marital status, language, region,race

  15. Estimation Model • Model A: GEM and interaction term btwn. GEM & Yrus • Model B: GDI and interaction term btwn. GDI & Yrus • Model C: GEM, GDI, and interaction with Yrus for both

  16. Odd ratio from logit regression (LFP) ** denotes statistically significant at 5% level * denotes statistically significant at 10% level

  17. Estimation Coefficients for Labor Supply ** denotes statistically significant at 5% level * denotes statistically significant at 10% level

  18. Estimation coefficients for Model A ** denotes statistically significant at 5% level * denotes statistically significant at 10% level Ex) Thailand (25th percentile) Dominican Rep(75thpercentile) Women’s working hours: 0.77hr (46min), Men’s working hours: 1.27hr (76min)

  19. Estimation coefficients for Model B ** denotes statistically significant at 5% level * denotes statistically significant at 10% level Ex) Iran (25th percentile)  Israel (75th percentile) Women’s working hours: 0.81hr (48min) Men’s working hours: 2.1hr(126min)

  20. Estimation coefficients for Model C ** denotes statistically significant at 5% level * denotes statistically significant at 10% level

  21. The Effect of GEM on Labor Supply over time Based on Model A, including only GEM in the regression Based on Model C, including both GEM& GDI in the regression Effect on working hours Effect n working hours YrUS YrUS

  22. The Effect of GDI on Labor Supply over time Based on Model B, including only GDI in the regression Based on Model C, including both GEM& GDI in the regression Effect on log wages Effect on log wages YrUS YrUS

  23. Robustness Test:A model for all immigrants • Controlling for all human capital factors, GEM, GDI, and gender ** denotes statistically significant at 5% level * denotes statistically significant at 10% level

  24. Conclusion: Results 1. Substantial cultural effect on labor participation and labor supply of immigrants even after controlling for human capital factors • Different Effect of GDI and GEM on labor participation • GEM increase working hours of both women and men, but it has greater effect on women

  25. Result 2. Different effects of GEM by sex. • Strong positive impact of GEM on labor participation and labor supply of female immigrants Support H1 3. Small effect of GDI • Small negative impact of GDI on labor participation • Stronger GDI effect on labor supply of men

  26. Conclusion: Implication The more empowered the women in a society are, the higher gains in terms of labor supply for both women and men. Economic development status helps men more. Importance of socio-political factors on capability 26

  27. Additional Results • Labor Force Participation 1)Race : Compared to Hispanic • Black, American Indian, Asian men less likely in LFP • Balck and Asian women more likely in LFP 2) Region : Affect men’s LFP only. • Compared to West, South men more likely to be in LFP, while Mwest, East men are less likely to be in LFP • Labor Supply 1) Race: Compared to Hispanic • White men work more, Black, AI, Asian men work less • Black and Asian women work more 2) Region: Affect women’s LS only. • Compared to West, South women work less than women in the West while East Mwest women work more than West women.

  28. Additional Results • Education: • More education has positive impact on both LFP & LS. Greater impact on women than men. • English Fluency: • Helps more women than men. • Fluency increase probability to be in LFP of women but not affect men. • Self-selection • Higher level of education than home country population doesn’t affect on Job Market Participation, but it increases working hours.

  29. Questions?

  30. Countries of origin and the number of immigrants

  31. Odds Ratio in Logit Regressions(Labor force participation)

  32. Odds Ratio (Cont’d)

  33. Regression for Labor Supply of Immigrants

  34. Labor Supply (cont’d)

  35. Education of female &male Immigrants

  36. Year in Migration

  37. Race of immigrants Male Female

  38. Descriptive Statistics - Marriage 38

  39. Basic Sensitivity Test

  40. EX) Portugal vs. Korea • Similar GDI (0.870 vs. 0.868) & Very Different GEM (0.571 vs. 0.336) • Moving from Korea to Portugal • Model A (Only GEM): Women 20 % Men 15 % • Model B (Only GDI) : Women 0.11% Men 0.16% • Model C (Both GEM & GDI): Women 26.6% Men 6.08%

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