Code for: Hispanic and Asian Earnings Inequality and the Role of Labor Market Entrants and Immigrants

Economic inequality has been increasing in the U.S. over the past several decades. The contribution of purely economic factors, such as wage divergence within a generation over time, versus demographic and societal contributors, such as selective immigration and changes in the earnings potential of new generations entering the labor market, is not well understood. The distinction between different mechanisms driving inequality may be especially relevant for racial and ethnic groups that experience high rates of immigration and demographic change. Using confidential-use, individual-level Internal Revenue Service and U.S. Census data, we follow the earnings of Hispanics and Asians between the ages of 18--45 with panel data that spans the years 2005--2014. We examine the impact that labor market entrants and new immigrant arrivals within each group have on group earnings inequality. We show that labor market entrants and immigrants increase inequality for both groups.<br><br><br><br>