Benefits of education at the intensive margin: childhood academic performance and adult outcomes among American immigrants

Using the Children of the Immigrants Longitudinal Study (CILS), we examine the associationbetween education at the intensive margin and twenty pecuniary and non-pecuniary adultoutcomes among first- and second-generation American immigrant youth. Education at theintensive margin is measured by two widely used standardized math and reading test scores,national percentile rankings on these tests and cumulative grade point average (GPA) in bothmiddle and high school. Our findings provide evidence that the academic achievement ofimmigrant children in early adolescence is an accurate predictor of later life outcomes. Wealso examine a novel hypothesis that relative academic performance of immigrant children inhigh school compared to middle school, which could be an indicator of change in adolescentaspirations and motivation as well as the degree of adaptation and assimilation to the hostcountry, has an effect on their adult outcomes even after controlling for the levels ofacademic performance in middle and high school. The results suggest that an improvementin GPA from middle school to high school is associated with favorable adult outcomes.Several sensitivity tests confirm the robustness of main findings.