Given the low educational attainment of a large number of immigrants, it is not surprising that average immigrant wages are low and falling relative to those of non-immigrants ...

Relative wages of the first generation show steady decline. In 1940, the average first-generation immigrant earned 5.8 percent more than the average non-immigrant worker, but relative wages fell to only 1.4 percent more in 1970, and then dropped precipitously by 2000 to almost 20 percent less than those of the typical non-immigrant worker. ...

Second-generation immigrants not only exceed the wages of first-generation immigrants but also exceed the wages of non-immigrant workers. This pattern demonstrates clearly that there is impressive upward economic mobility from the first to the second immigrant generation.

But before we conclude that the great American wage escalator for immigrants is working well, we should note ... relative wages of the second generation dropped consistently over the period from 17.8 percent to 6.3 percent above those of non-immigrant workers.

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Thus, the pattern of declining relative wages of first-generation immigrants is associated with a similar pattern of declining relative wages in the second generation. Second-generation mobility is still in operation, but the second generation is earning relative wages that are lower than those of previous second-generation workers.

You can read the full report on The Brookings Institution Web site at: www3.brookings.edu/es/ccf/haskins200707.pdf.