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Human capital transmission and the earnings of second-generation immigrants in Sweden

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  • Mats Hammarstedt

    ()

  • Mårten Palme

    ()

Abstract

We compare the earnings and the intergenerational earnings mobility of immigrants with natives in Sweden. We find an overall convergence in average earnings between immigrants and natives across generations. This convergence hides a divergence in average earnings between groups of immigrants with different ethnic origins. We also find that, on average, immigrants have lower intergenerational earnings mobility within groups with similar ethnic backgrounds. Immigrant groups with relatively low intergenerational earnings mobility increased their average relative earnings in the second generation. The interpretation of this is that immigrant groups with a high degree of intergenerational transmission of human capital from parent to offspring improve their position on the labor market across generations. Copyright Hammarstedt and Palme; licensee Springer. 2012

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Bibliographic Info

Article provided by Springer in its journal IZA Journal of Migration.

Volume (Year): 1 (2012)
Issue (Month): 1 (December)
Pages: 1-23

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Handle: RePEc:spr:izamig:v:1:y:2012:i:1:p:1-23:10.1186/2193-9039-1-4

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Web page: http://www.springer.com/economics/journal/40176

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Related research

Keywords: J15; J24; J61; J62; Intergenerational income mobility; Intergenerational earnings correlation; Becker-Tomes model; Ethnic capital;

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References

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  1. Borjas, George J, 1993. "The Intergenerational Mobility of Immigrants," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 11(1), pages 113-35, January.
  2. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center, Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  3. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  4. George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
  5. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, Elsevier, vol. 32(3), pages 385-397, August.
  6. Dan-Olof Rooth & Jan Ekberg, 2003. "Unemployment and earnings for second generation immigrants in Sweden. Ethnic background and parent composition," Journal of Population Economics, Springer, vol. 16(4), pages 787-814, November.
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Cited by:
  1. Sweetman, A. & Ours, J.C. van, 2014. "Immigration: What About the Children and Grandchildren?," Discussion Paper, Tilburg University, Center for Economic Research 2014-009, Tilburg University, Center for Economic Research.
  2. Aycan, Çelikaksoy & Lena, Nekby & Saman, Rashid, 2009. "Assortative Mating by Ethnic Background and Education in Sweden: The Role of Parental Composition on Partner Choice," SULCIS Working Papers 2009:7, Stockholm University Linnaeus Center for Integration Studies - SULCIS.

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