This article examines skill gaps between immigrants and native‐born Americans and generational progress achieved by different immigrant ethnic groups. Evidence of a widening skill gap is not strong. While wage data show a pronounced fall in relative wages of “recent” immigrants, significant independent contributors to that decline are a widening age gap and the increasing price of skill. When attention shifts to legal migrants, the evidence is that legal migrants are, at a minimum, keeping up with native‐born Americans. I find that the concern that educational generational progress among Latino immigrants has lagged behind other immigrant ethnic groups is unfounded.

Using a unique set of household level panel data, we estimate the effect of capital gains on saving by asset type, controlling for observable and unobservable household specific fixed effects. The results suggest that the decline in the personal saving rate since 1984 is largely due to the significant capital gains in corporate equities experienced over this period. Over five-year periods, the effect of capital gains in corporate equities on saving is substantially larger than the effect of capital gains in housing or other assets. Failure to differentiate wealth affects across asset types results in a significant understatement or overstatement of the size of their impact, depending on the asset.

Using a unique set of household level panel data, we estimate the effect of capital gains on saving by asset type, controlling for observable and unobservable household specific fixed effects. The results suggest that the decline in the personal saving rate since 1984 is largely due to the significant capital gains in corporate equities experienced over this period. Over five-year periods, the effect of capital gains in corporate equities on saving is substantially larger than the effect of capital gains in housing or other assets. Failure to differentiate wealth affects across asset types results in a significant understatement or overstatement of the size of their impact, depending on the asset.