PT - JOURNAL ARTICLE AU - Ferrer, Ana AU - Green, David A. AU - Riddell, W. Craig TI - The Effect of Literacy on Immigrant Earnings AID - 10.3368/jhr.XLI.2.380 DP - 2006 Mar 31 TA - Journal of Human Resources PG - 380--410 VI - XLI IP - 2 4099 - http://jhr.uwpress.org/content/XLI/2/380.short 4100 - http://jhr.uwpress.org/content/XLI/2/380.full SO - J Hum Resour2006 Mar 31; XLI AB - We examine the impact of literacy on immigrant earnings and the sources of lower returns to education and experience among immigrants. We find that the native-born literacy distribution dominates that for immigrants. However, the two groups obtain similar returns to literacy skills, contrary to discrimination-based explanations for immigrant—native-born earnings differentials. Among the university-educated, literacy differences account for about two-thirds of the earnings gap. However, low returns to foreign experience have a larger impact on this differential. Among the less educated, literacy differences and differences in the returns to experience have similar effects on the earnings differential.