RT Journal Article SR Electronic T1 The Effect of Literacy on Immigrant Earnings JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 380 OP 410 DO 10.3368/jhr.XLI.2.380 VO XLI IS 2 A1 Ferrer, Ana A1 Green, David A. A1 Riddell, W. Craig YR 2006 UL http://jhr.uwpress.org/content/XLI/2/380.abstract 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.