LABOR
ECONOMICS
SIXTH EDITION
p p
GEORGE J. BORJAS
p p
,Labor Economics
p
Sixth Edition
p
George J. Borjas
p p
HarvardpUniversity
,LABORpECONOMICS,pSIXTHpEDITION
PublishedpbypMcGraw-Hill,papbusinesspunitpofpThepMcGraw-
HillpCompanies,pInc.,p1221pAvenuepofpthep Americas,pNewpYork,pNYp10020.pCopyrightp©p2013pbypThepMcGr
aw-
HillpCompanies,pInc.pAllprightspreserved.p PrintedpinpthepUnitedpStatespofpAmerica.pPreviouspeditionsp©p2010,p
2008,pandp2005.pNoppartpofpthisppublicationp maypbepreproducedporpdistributedpinpanypformporpbypanypmeans,p
orpstoredpinpapdatabaseporpretrievalpsystem,p withoutptheppriorpwrittenpconsentpofpThepMcGraw-
HillpCompanies,pInc.,pincluding,pbutpnotplimitedpto,pinpanyp networkporpotherpelectronicpstorageporptransmission
,porpbroadcastpforpdistanceplearning.
Somepancillaries,pincludingpelectronicpandpprintpcomponents,pmaypnotpbepavailableptopcustomerspoutsidepthep U
nitedpStates.
Thispbookpispprintedponpacid-freeppaper.
1p2p3p4p5p6p7p8p9p0pDOC/DOCp1p0p9p8p7p6p5p4p3p2
ISBNp p 978-0-07-352320-0
MHIDp 0-07-352320-8
VicepPresidentp&pEditor-in-Chief:pBrentpGordon
VicepPresidentpofpSpecializedpPublishing:pJanicepM.pRoerig-Blong
Publisher:pDouglaspReiner
SponsoringpEditor:pDarylpC.pBruflodtp Marketi
ngpCoordinator:pColleenpP.pHavensp LeadpProj
ectpManager:pJanepMohr
DesignpCoordinator:pBrendapA.pRolwes
CoverpDesigner:pStudiopMontage,pSt.pLouis,pMissouri
CoverpImage:p©pImagestatepMediapRF
Buyer:pKarapKudronowicz
MediapProjectpManager:pBalajipSundararaman
p Compositor:pLaserwordspPrivatepLimitedp Ty
peface:p10/12pTimespNewpRoman
Printer:pR.R.pDonnelley
Allpcreditspappearingponppageporpatpthependpofpthepbookparepconsideredptopbepanpextensionpofpthepcopyrightppage.
LibrarypofpCongresspCataloging-in-PublicationpData
Borjas,pGeorgepJ.
Laborpeconomicsp/pGeorgepJ.pBorjas.p—p6thped.
p.pcm.
ISBNp978-0-07-352320-0p(alk.ppaper)
1.p Laborpeconomics.p2.p Laborpmarket—
UnitedpStates.p I.pTitle.p HD4901.B674p2013
331—dc23
2011038722
www.mhhe.com
, About the Author
p p
George J. Borjas
p p
GeorgepJ.pBorjaspispthepRobertpW.pScrivnerpProfessorpofpEconomicspandpSocialpPolicypatpt
hepJohnpF.pKennedypSchoolpofpGovernment,pHarvardpUniversity.pHepispalsopapresearchpass
ociatepatpthepNationalpBureaupofpEconomicpResearch.pProfessorpBorjaspreceivedphispPh.D.p
inpeconomicspfrompColumbiapUniversitypinp1975.
ProfessorpBorjasphaspwrittenpextensivelyponplaborpmarketpissues.pHepispthepauthorpofpsev
eralpbooks,pincludingpWagepPolicypinpthepFederalpBureaucracyp(AmericanpEnterprisepInsti
tute,p1980),pFriendsporpStrangers:pThepImpactpofpImmigrantsponpthepU.S.pEconomyp(Basicp
Books,p1990),pandpHeaven’spDoor:pImmigrationpPolicypandpthepAmericanpEcon-
pomyp(PrincetonpUniversitypPress,p1999).pHephasppublishedpmorepthanp125particlespinpbook
spandpscholarlypjournals,pincludingpthepAmericanpEconomicpReview,pthepJournalpofpPolitic
alpEconomy,pandpthepQuarterlypJournalpofpEconomics.
ProfessorpBorjaspwaspelectedpapFellowpofpthepEconometricpSocietypinp1998,pandpapFellow
pofpthepSocietypofpLaborpEconomicspinp2004.pInp2011,pProfessorpBorjaspwaspawardedpthepI
ZApPrizepinpLaborpEconomics.pHepwaspanpeditorpofpthepReviewpofpEconomicspandpStatisticspf
romp1998ptop2006.pHepalsophaspservedpaspapmemberpofpthepAdvisorypPanelpinpEconomicspatpt
hepNationalpSciencepFoundationpandphasptestifiedpfrequentlypbeforepcongressionalpcommit-
pteespandpgovernmentpcommissions.
iii
ECONOMICS
SIXTH EDITION
p p
GEORGE J. BORJAS
p p
,Labor Economics
p
Sixth Edition
p
George J. Borjas
p p
HarvardpUniversity
,LABORpECONOMICS,pSIXTHpEDITION
PublishedpbypMcGraw-Hill,papbusinesspunitpofpThepMcGraw-
HillpCompanies,pInc.,p1221pAvenuepofpthep Americas,pNewpYork,pNYp10020.pCopyrightp©p2013pbypThepMcGr
aw-
HillpCompanies,pInc.pAllprightspreserved.p PrintedpinpthepUnitedpStatespofpAmerica.pPreviouspeditionsp©p2010,p
2008,pandp2005.pNoppartpofpthisppublicationp maypbepreproducedporpdistributedpinpanypformporpbypanypmeans,p
orpstoredpinpapdatabaseporpretrievalpsystem,p withoutptheppriorpwrittenpconsentpofpThepMcGraw-
HillpCompanies,pInc.,pincluding,pbutpnotplimitedpto,pinpanyp networkporpotherpelectronicpstorageporptransmission
,porpbroadcastpforpdistanceplearning.
Somepancillaries,pincludingpelectronicpandpprintpcomponents,pmaypnotpbepavailableptopcustomerspoutsidepthep U
nitedpStates.
Thispbookpispprintedponpacid-freeppaper.
1p2p3p4p5p6p7p8p9p0pDOC/DOCp1p0p9p8p7p6p5p4p3p2
ISBNp p 978-0-07-352320-0
MHIDp 0-07-352320-8
VicepPresidentp&pEditor-in-Chief:pBrentpGordon
VicepPresidentpofpSpecializedpPublishing:pJanicepM.pRoerig-Blong
Publisher:pDouglaspReiner
SponsoringpEditor:pDarylpC.pBruflodtp Marketi
ngpCoordinator:pColleenpP.pHavensp LeadpProj
ectpManager:pJanepMohr
DesignpCoordinator:pBrendapA.pRolwes
CoverpDesigner:pStudiopMontage,pSt.pLouis,pMissouri
CoverpImage:p©pImagestatepMediapRF
Buyer:pKarapKudronowicz
MediapProjectpManager:pBalajipSundararaman
p Compositor:pLaserwordspPrivatepLimitedp Ty
peface:p10/12pTimespNewpRoman
Printer:pR.R.pDonnelley
Allpcreditspappearingponppageporpatpthependpofpthepbookparepconsideredptopbepanpextensionpofpthepcopyrightppage.
LibrarypofpCongresspCataloging-in-PublicationpData
Borjas,pGeorgepJ.
Laborpeconomicsp/pGeorgepJ.pBorjas.p—p6thped.
p.pcm.
ISBNp978-0-07-352320-0p(alk.ppaper)
1.p Laborpeconomics.p2.p Laborpmarket—
UnitedpStates.p I.pTitle.p HD4901.B674p2013
331—dc23
2011038722
www.mhhe.com
, About the Author
p p
George J. Borjas
p p
GeorgepJ.pBorjaspispthepRobertpW.pScrivnerpProfessorpofpEconomicspandpSocialpPolicypatpt
hepJohnpF.pKennedypSchoolpofpGovernment,pHarvardpUniversity.pHepispalsopapresearchpass
ociatepatpthepNationalpBureaupofpEconomicpResearch.pProfessorpBorjaspreceivedphispPh.D.p
inpeconomicspfrompColumbiapUniversitypinp1975.
ProfessorpBorjasphaspwrittenpextensivelyponplaborpmarketpissues.pHepispthepauthorpofpsev
eralpbooks,pincludingpWagepPolicypinpthepFederalpBureaucracyp(AmericanpEnterprisepInsti
tute,p1980),pFriendsporpStrangers:pThepImpactpofpImmigrantsponpthepU.S.pEconomyp(Basicp
Books,p1990),pandpHeaven’spDoor:pImmigrationpPolicypandpthepAmericanpEcon-
pomyp(PrincetonpUniversitypPress,p1999).pHephasppublishedpmorepthanp125particlespinpbook
spandpscholarlypjournals,pincludingpthepAmericanpEconomicpReview,pthepJournalpofpPolitic
alpEconomy,pandpthepQuarterlypJournalpofpEconomics.
ProfessorpBorjaspwaspelectedpapFellowpofpthepEconometricpSocietypinp1998,pandpapFellow
pofpthepSocietypofpLaborpEconomicspinp2004.pInp2011,pProfessorpBorjaspwaspawardedpthepI
ZApPrizepinpLaborpEconomics.pHepwaspanpeditorpofpthepReviewpofpEconomicspandpStatisticspf
romp1998ptop2006.pHepalsophaspservedpaspapmemberpofpthepAdvisorypPanelpinpEconomicspatpt
hepNationalpSciencepFoundationpandphasptestifiedpfrequentlypbeforepcongressionalpcommit-
pteespandpgovernmentpcommissions.
iii
