– The purpose of this paper is to investigate whether immigrants in the USA receive an earnings premium associated with marrying a native.
– The raw premium revealed by the 2000 US Census data is suspect due to possible endogeneity and selection bias. Instrumental variables estimation, a sample selection model, and a counterfactual construction method are used to address these issues.
– Results suggest a positive and modest intermarriage premium, although the magnitude varies with the estimation technique. The evidence is particularly strong for immigrants with high English proficiency, college graduates, and immigrants older than 12 upon arrival in the USA.
– It is shown that the size of intermarriage premiums varies significantly across different immigrant groups. The empirical results provide insights into the economic assimilation process and mechanisms through which intermarriage influences the labor market outcomes of immigrants.
