Overview of the CBO Report

Congressional Budget Office — Immigrant Earnings Assimilation, 1981–2021 (Report No. 62202, March 2026)

The report analyzes how immigrants’ earnings evolve after arriving in the United States and how closely their wages eventually approach those of U.S. born workers. Using several decades of census and survey data, the CBO examines the economic process known as “earnings assimilation”, the extent to which immigrants’ wages increase with time spent in the U.S. labor market.

Overall, the study finds that immigrants typically begin with lower earnings than comparable U.S. born workers, but their wages tend to rise over time as they gain U.S. work experience, improve language skills, and adapt to the domestic labor market.

Key Findings

1. Immigrants Usually Start with Lower Earnings

Newly arrived immigrants generally earn less than native-born workers with similar education levels. Several factors explain this gap:

• Limited English proficiency

• Lack of U.S. work experience

• Limited recognition of foreign credentials

• Occupational adjustment after migration

These factors often place new immigrants in lower paying jobs initially.

2. Earnings Increase with Time in the United States

The report finds significant earnings growth over time for many immigrants. As immigrants accumulate U.S. work experience and integrate into the labor market, their wages often rise.

Drivers of wage growth include:

• Better English language proficiency

• Accumulation of U.S specific skills

• Networking and professional mobility

• Movement into higher paying occupations

In many cases, earnings partially or largely converge with native born workers over time.

3. Assimilation Patterns Have Changed Over Time

The CBO finds that earnings assimilation has varied across immigrant cohorts since the 1980s. Differences are linked to:

• Changes in immigrants’ educational levels

• Shifts in immigration policy

• Differences in countries of origin

• Variation in labor market conditions at arrival

Some cohorts experienced slower wage convergence than earlier groups.

4. Education Strongly Influences Outcomes

Educational attainment is one of the strongest predictors of immigrant earnings trajectories.

• Highly educated immigrants often experience faster wage growth and approach or exceed native born earnings.

• Lower-skilled immigrants tend to experience slower wage convergence and remain concentrated in lower-paying sectors.

5. Earnings Assimilation Has Important Policy Implications

The report emphasizes that immigrant earnings trajectories affect:

• Tax revenues

• Economic growth

• Labor force participation

• Public program eligibility

Because earnings typically increase over time, immigrants’ economic contributions also change over the course of their lives in the United States.

Broader Economic Context

The report fits into a larger body of CBO research showing that immigration influences the U.S. economy by expanding the labor force and increasing economic output. For example, previous CBO analyses estimate that immigration can increase federal revenues and overall GDP as immigrant workers join the workforce and pay taxes.

However, fiscal impacts may vary across levels of government, with state and local governments often facing higher near term costs in areas such as education and health care.

Methodology

The CBO study relies primarily on:

• U.S. Census data

• American Community Survey (ACS) microdata

• Longitudinal comparisons of immigrant cohorts from 1981–2021

The analysis compares immigrants with similar U.S. born workers taking into consideration:

• education

• age

• gender

• labor-force experience

Bottom Line

The report concludes that immigrant earnings typically follow a trajectory of initial disadvantage followed by gradual improvement. While immigrants often earn less than comparable U.S. born workers when they arrive, many experience significant wage growth as they integrate into the U.S. labor market.

In essence:
Immigration’s economic impact is dynamic. Early earnings gaps are common, but over time many immigrants achieve substantial economic mobility, contributing more fully to the labor market and tax base.

Why Law Librarians and Legal Information Professionals Should Care

The Congressional Budget Office (CBO) report, Immigrant Earnings Assimilation, 1981–2021 provides data that is directly relevant to several areas of law, policy research, and public debate. For law librarians and legal information professionals, the report serves as an authoritative federal source that can inform research on immigration policy, labor law, economic policy, and public finance.

First, the report highlights the importance of evidence based policymaking in immigration debates. Questions about immigration’s economic impact frequently arise in legislative hearings, litigation, and policy analysis. Legal researchers are often asked to locate credible, nonpartisan data on issues such as immigrant wages, labor market integration, and long-term fiscal contributions. As the analytical arm of Congress, the CBO provides data that courts, legislators, scholars, and journalists frequently rely upon.

Second, the report illustrates the growing need for interdisciplinary legal research. Modern immigration and labor policy debates increasingly require understanding economic datasets, demographic trends, and statistical methodologies. Law librarians play a crucial role in guiding researchers to reliable government reports, data repositories, and empirical scholarship that inform these discussions.

Finally, the report underscores a broader point about the information ecosystem surrounding public policy. In an environment where immigration statistics are often selectively cited or misinterpreted, legal information professionals serve as essential intermediaries helping researchers identify primary sources, understand their limitations, and place them in appropriate legal and policy context.

For those working in law libraries, courts, academic institutions, law firms, and policy organizations, the CBO report is a useful example of how government economic analysis intersects with legal research, legislative development, and public policy discourse.

Related Publication:

Immigrants and the U.S. Economy, Spring 2026

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Established in 1974, The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government.  It is charged with providing  members of Congress  objective  analysis of budgeting and economic issues to support the congressional budget process. Each year, CBO economists and budget analysts produce dozens of reports and hundreds of cost estimates for proposed legislation