Wage growth better for naturalized citizens - Economics - Brief Article

USA Today (Society for the Advancement of Education), August, 2002

America has long held a mystique for immigrants as the land of opportunity. This is especially true for young male immigrants who take the step of becoming U.S. citizens. Research by economics professors James Ragan and Bernt Bratsberg, Kansas State University, Manhattan, found that pay rises faster for naturalized citizens than for native workers or immigrants who do not become citizens.

"One might argue that it isn't the act of becoming a U.S. citizen that changes wage growth, but the people who become U.S. citizens tend to be more skilled anyway," Ragan notes, but it turns out that the improved growth in pay doesn't start until immigrants become citizens. This can open the door to a wide range of future career options. White-collar jobs are easier to get for citizens, he says. A person must be a citizen to be hired for many Federal government jobs. In a number of states, public safety positions, such as police officer, must be filled by citizens. Some jobs require travel abroad, which is easier for citizens than immigrants.

Ragan points out that union workers sometimes prefer that coworkers also be citizens, and union jobs typically pay better than nonunion jobs. Employers can be fined if they hire people who don't have a valid permit to work in the U.S. Since citizenship is the ultimate work permit, employers don't have to worry about it running out.

Recent immigrants aren't doing as well financially as immigrants who arrived 20 or 40 years ago. Today's immigrants tend to come to America from poorer countries. They have fewer skills and less education, and thus get worse jobs. The study found that naturalization especially benefits people who come from less-developed countries. "If you are stuck in a crummy job, then having these barriers broken down will benefit you more than if you already have a decent job," Ragan suggests.