Using U.S. panel data on adult males, I compare the "profile heterogeneity model" of earnings dynamics, in which the earnings/experience profile varies across individuals, to a competing model in which earnings "has a unit root." The latter specification enjoys increasing popularity among researchers. My analysis questions this favor, suggesting the profile heterogeneity model provides a more consistent representation of the data. I also provide new estimates of the variation in earnings growth rates. Previous evidence is from relatively unrepresentative samples. Individuals one standard deviation above the mean enjoy a 20%-30% earnings advantage in just 10 years.

We evaluate some explanations of immigrants' family labor-supply behavior. Upon arrival, immigrant husbands work less than natives, but immigrant wives work more. A conventional labor-supply model uses wage assimilation to explain these differences but is not supported by the data. More favorable results are obtained for the "family investment model," in which wives in immigrant families take on "dead-end" jobs to finance their husbands' investments in human capital. We conclude that family composition is an important correlate of immigrants' assimilation, and the family investment model can account for many of the patterns in the data.

The authors evaluate some explanations of immigrants' family labor-supply behavior. Upon arrival, immigrant husbands work less than natives but immigrant wives work more. A conventional labor-supply model uses wage assimilation to explain these differences but is not supported by the data. More favorable results are obtained for the 'family investment model, ' in which wives in immigrant families take on 'dead-end' jobs to finance their husbands' investments in human capital. The authors conclude that family composition is an important correlate of immigrants' assimilation and the family investment model can account for many of the patterns in the data. Copyright 1997 by American Economic Association.