Does background matter? The transmission of human capital from a planned to a market economy

The early U.S. economic achievement of former Soviet citizens entering the United States during the period 1979 through 1985 is analyzed. Using the So viet Interview Project (SIP) data, components of human capital acquired in the former Soviet Union (FSU) are identified and related to labor force par ticipation and income outcomes in the United States. FSU education, experie nce and industry variables have important, variable and differing impacts u pon both participation and income, and such outcomes differ for males and f emales. FSU immigrants' income is below U.S. income. Differing rates of ret urn to characteristics, not the endowments themselves, are responsible for observed differentials.