THE WORK EFFORT AND THE CONSUMPTION OF IMMIGRANTS AS A FUNCTION OF THEIR ASSIMILATION

Positive self-selection has been used to explain the superior economic performance of some immigrant groups. Even if immigrants and natives are identical, however, the former face different incentives. In parti cular, they bear costs not incurred by natives, including monetary cos ts of moving, costs of staying in touch with family, and obligations t o those left behind. Nonmonetary costs include stress and loss of loca tion specific human capital. The focus of this paper is on how these c osts influence the decisions of immigrants relative to those of native s. Particular attention is given to the role of assimilation.