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Intergenerational assimilation of UK immigrants in the labour market: A minor assumption with enormous implications for inference

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  • Kone, Zovanga L.

Abstract

Studies on the intergenerational assimilation of UK immigrants and their UK-born children have mainly relied on ethnicity and birthplace to measure nativity status because of data limitations. This would inevitably lead to classification errors in the sample. We present analytical results showing biases resulting from classification errors can go in any direction even when the sole regressor is a binary variable. The empirical analysis confirms such unpredictable implications for inference. A more accurate measure of nativity status based on parent’s birthplace indicates the integration of immigrants might be different to what we would get from a measure prone to wrongly classifying individuals.

Suggested Citation

  • Kone, Zovanga L., 2018. "Intergenerational assimilation of UK immigrants in the labour market: A minor assumption with enormous implications for inference," Economics Letters, Elsevier, vol. 164(C), pages 94-99.
    • Handle: RePEc:eee:ecolet:v:164:y:2018:i:c:p:94-99
    DOI: 10.1016/j.econlet.2018.01.009
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    References listed on IDEAS

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    4. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843, Elsevier.
    5. Duncan, Brian & Grogger, Jeffrey & Leon, Ana Sofia & Trejo, Stephen J., 2020. "New evidence of generational progress for Mexican Americans," Labour Economics, Elsevier, vol. 62(C).
    6. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2017. "Moving Towards Estimating Sons' Lifetime Intergenerational Economic Mobility in the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(1), pages 79-100, February.
    7. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages 4-30, February.
    8. AIGNER, Dennis J., 1973. "Regression with a binary independent variable subject to errors of observation," LIDAM Reprints CORE 130, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    More about this item

    Keywords

    Classification errors; Immigrants; Labour market outcomes;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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