TITLE:
Wage Differentials between Native-Born Workers and Immigrants in the United States: Advanced Econometric Evidence from Current Population Survey Data (2019-2022)*
AUTHORS:
Mahmoud Momtaz Ali, Ahmed Abdel Moneim Hammam
KEYWORDS:
Immigration, Wage Gaps, Labor Market Discrimination, Instrumental Variables, United States
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.13 No.8,
August
25,
2025
ABSTRACT: This study provides comprehensive evidence on wage differentials between native-born workers and immigrants in the United States using advanced econometric techniques and rich microdata from the U.S. Current Population Survey (2019-2022). We develop a formal theoretical model incorporating human capital transferability and discrimination mechanisms, then employ multiple identification strategies including instrumental variables, propensity score matching, and quantile regression to address endogeneity and selection concerns. Our novel methodological contribution combines historical immigration networks as instruments with machine learning-enhanced matching algorithms and distributional analysis. The findings reveal significant heterogeneity across immigrant groups: European/Canadian immigrants earn 4.1% premiums while Asian/African immigrants face 5.2% wage penalties relative to comparable U.S. natives. Wage gaps operate primarily through occupational sorting rather than within-job discrimination, with larger penalties at lower quantiles and intersectional disadvantages for immigrant women. Extensive robustness checks including natural experiments from policy changes confirm our main results. The analysis provides strong evidence for targeted policy interventions addressing credential recognition, occupational licensing reform, and anti-discrimination enforcement.