The tradable sector has a lower consumption-output comovement than that in the nontradable sector. An artificial autarky generates identical comovements. Once the economy is open, however, the comovement in the nontradable sector becomes too low. The paper demonstrates that the intensity of...

1. Introduction: Background and Overview -- 2. What Caused the Decline in Immigrant Entry Earnings? -- 3. The Immigrant Human Capital Investment Model -- 4. Methodological Implications of a Human Capital Investment Perspective -- 5. The Earnings Growth of Asian versus European Immigrants -- 6....