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After controlling for a number of factors known to influence earnings, analysis suggests immigrants should be earning even more (Denny et al. 1997; Dustmann and Fabbri 2005; Bell 1997).
Economists at the Brookings Institution, a think-tank, analysed wages in manufacturing and non-manufacturing jobs between 2008 and 2010, controlling for factors that influence earnings, such as sex and education.
Thus, arguably individual fixed effects do not eliminate the influence of individual-level factors altogether, particularly the factors that influence earnings growth rather than levels.
Nonetheless, ability and some personality traits do somehow influence earnings within the formal sector, albeit more in Lebanon than in Syria.
Finally, omitted-variable bias may arise because unobserved variables like non-cognitive skills, personality traits, family background, or health status could directly influence earnings or employment prospects and may also be related to cognitive skills.
Moreover, unobserved variables like family networks, health, or non-cognitive skills could directly influence earnings; if also related to skills, these could lead to omitted variable bias in the analysis of skills.
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Alan Krueger argues that for musicians and artists, luck influences earnings far more than skill.
This is usually before women are married of have children, so the only choice that influences earnings here is willingness to negotiate on a starting salary.
But apart from the fact that, as described above, quantities exported influence export earnings as much as prices, there are many other factors that determine export earnings.
"If grain prices stay down," he said, "that could be a positive influence on earnings potential for next year".
On the other hand, the ability of informal workers in Lebanon does not significantly influence their earnings.
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CEO of Professional Science Editing for Scientists @ prosciediting.com