From 1981 to 1991 the mean earnings of immigrants fell further behind those of natives in Hong Kong, with the earnings gap widening from 11.3% to 25.5%. Earnings divergence of this magnitude is rather unusual among countries that receive many immigrants. We show that earnings divergence in Hong...

Spousal education is correlated with earnings for two reasons: cross-productivity between couples and assortative mating. This article empirically disentangles the two effects by using Chinese twins data. We have two innovations: using twins data to control for the unobserved mating effect in...