Geo‐cultural Origin and Economic Incorporation of High‐skilled Immigrants in Israel

Abstract

The present study focuses on differential modes of economic incorporation and economic success of highly skilled immigrants in Israel. Data were obtained from the 2009–2011 Labor Force and Income Surveys. The analysis pertains to recent immigrants aged 25–64 years who attained academic education prior to migration. Three major geo‐cultural groups of immigrants are compared with Israeli‐born. The groups are as follows: Europe and the Americas, the Former Soviet Union, and Asia and Africa. The multivariate analysis (conducted separately for men and women) reveals significant differences across geo‐cultural groups in labour‐market performance (i.e. economic participation) and in economic outcomes (i.e. attainment of professional occupation, occupational status, and earnings). An ethnic hierarch is observed with Israeli‐born at the top, followed by immigrants from Europe and the Americas; the groups of immigrants from the Former Soviet Union and from Asia or Africa are placed at the bottom of the hierarchy. Although all high‐skilled immigrants are disadvantaged when compared with Israeli‐born, all tend to improve their labour‐market status with the passage of time in the country. However, only immigrants from Europe and the Americas are able to reach economic assimilation with high‐skilled Israeli‐born. Asian–African immigrants and immigrants from the Former Soviet Union are less successful in converting skills into economic success; they remain economically disadvantaged even after 20 years of residence. The impact of geo‐cultural origin on differential ability of immigrants to transmit credentials from one country to another is discussed. Copyright © 2015 John Wiley & Sons, Ltd.

Segmented socioeconomic adaptation of New Eastern European professionals in the United States

“…Length of residency in the host country improves socioeconomic outcomes of skilled immigrants. With the passage of time, immigrants gain knowledge of the society, acquire country-specific skills, and are better equipped to compete for higher paying jobs (Beckhusen et al, 2013 ; Bodankin & Semyonov, 2016 ). Older professionals adapt better socioeconomically, as they have a higher amount of human capital and experience (Bodankin & Semyonov, 2016 ).…”

“…With the passage of time, immigrants gain knowledge of the society, acquire country-specific skills, and are better equipped to compete for higher paying jobs (Beckhusen et al, 2013 ; Bodankin & Semyonov, 2016 ). Older professionals adapt better socioeconomically, as they have a higher amount of human capital and experience (Bodankin & Semyonov, 2016 ). Prior research found regional variations in socioeconomic outcomes, with immigrants residing in central cities having higher socioeconomic status than others (Bodankin & Semyonov, 2016 ).…”

“…Older professionals adapt better socioeconomically, as they have a higher amount of human capital and experience (Bodankin & Semyonov, 2016 ). Prior research found regional variations in socioeconomic outcomes, with immigrants residing in central cities having higher socioeconomic status than others (Bodankin & Semyonov, 2016 ). In the U.S., immigrant professionals tend to concentrate in “traditional” immigrant states including California, New York, Florida, and New Jersey (Batalova & Lowell, 2007 ).…”

“…Among immigrants in Canada, for example, over-education reached 40% among professionals with bachelor’s degrees, 50% among doctoral/professional degree holders, and 75% among those with master’s degrees (Beckhusen et al, 2013 ). Being married is associated with better socioeconomic adaptation among immigrant professionals (Bodankin & Semyonov, 2016 ). Having a spouse present represents an attachment to the U.S. and may serve as an important source of social support and encouragement, contributing to better socioeconomic adaptation among married professionals (Constant & Massey, 2002 ).…”

“…Foreign-born professionals from English-speaking developed countries and Europe (excluding Eastern Europe) are able to transfer their skills more easily in the U.S. labor market than their respective counterparts, resulting in their representation in all skilled occupations (Haley & Taengnoi, 2011 ). The literature characterized immigrants from the former Soviet Union (FSU) as highly educated and professional, but despite their high amount of human capital, many had experienced downward social mobility (Bodankin & Semyonov, 2016 ). Based on GDP per capita, Moldova is the least economically developed FSU country in the analysis followed by Ukraine (The World Bank, 2014 ), however, because of the small sample size of respondents from Moldova, Ukraine was selected as the reference category for the country of origin variable in regression analyses to ensure the reliability of results.…”