TY  - RPRT
        AU  - Dustmann, Christian
AU  - Ku, Hyejin
AU  - Surovtseva, Tetyana
        TI  - Real Exchange Rates and the Earnings of Immigrants
        PY  - 2023/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16390
        UR  - https://www.iza.org/index.php/publications/dp16390
        AB  - We relate origin-destination real price differences to immigrants' reservation wages and their career trajectories, exploiting administrative data from Germany and the 2004 enlargement of the European Union. We find that immigrants who enter Germany when a unit of earnings from Germany allows for larger consumption at home settle for lower entry wages, but subsequently catch up to those arriving with less favourable exchange rates, through transition to better-paying occupations and firms. Similar patterns hold in the US data. Our analysis offers one explanation for the widespread phenomenon of immigrants' downgrading, with new implications for immigrant cohort effects and assimilation profiles.
        KW  - immigrant downgrading
KW  - reservation wage
KW  - real exchange rate
KW  - earnings assimilation
        ER  -