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Multi-Generation Model of Immigrant Earnings: Theory and Application

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Author Info

  • Gil S. Epstein

    () (Department of Economics, Bar Ilan University)

  • Tikva Lecker

    (Department of Economics, Bar Ilan University)

Abstract

The literature, starting with Chiswick (1977, 1978) to Gang and Zimmermann (2000), more recently, focuses on the economic achievements and performance of first- and second-generation migrants. This paper presents a three-generation migrant analysis, comparing relative economic performance of various migrant generations to one another and to the native population. We developed a theoretical model, which was then explored empirically using data from the 1995 Israeli Census. In both the theoretical and empirical analyses, the curve describing intergenerational immigrant earnings mobility is inversely U-shaped. The second generation earns relatively more than the first and third generations, while the third generation earns less than the second, but more than the first. Thus, assimilation of the third generation into the local population is far from clear.

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File URL: http://www.biu.ac.il/soc/ec/wp/6-01/6-01.pdf
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Bibliographic Info

Paper provided by Department of Economics, Bar-Ilan University in its series Working Papers with number 2001-06.

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Date of creation: Feb 2001
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Handle: RePEc:biu:wpaper:2001-06

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Postal: Faculty of Social Sciences, Bar Ilan University 52900 Ramat-Gan
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Web page: http://econ.biu.ac.il
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Keywords: Intergenerational earnings mobility; migration; labor market performance.;

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References

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  1. Corak, Miles Heisz, Andrew, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch.
  2. George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
  3. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  4. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  5. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-80, February.
  6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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Citations

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Cited by:
  1. Gil Epstein & Ira Gang, 2010. "A Political Economy of the Immigrant Assimilation: Internal Dynamics," CReAM Discussion Paper Series 1015, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
  3. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute for the Study of Labor (IZA).
  4. Gil S. Epstein & Yosef Mealem, 2010. "Interactions between Local and Migrant Workers at the Workplace," Development Working Papers 297, Centro Studi Luca d\'Agliano, University of Milano.
  5. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," Norface Discussion Paper Series 2011011, Norface Research Programme on Migration, Department of Economics, University College London.
  6. Ekberg, Jan & Hammarstedt, Mats & Shukur, Ghazi, 2007. "SUR estimation of earnings differentials between three generations of immigrants and natives," CAFO Working Papers 2007:7, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
  7. Christian Dustmann & Nikolaos Theodoropoulos, 2008. "Ethnic minority immigrants and their children in Britain," University of Cyprus Working Papers in Economics 7-2008, University of Cyprus Department of Economics.
  8. Kohns, Stephan, 2001. "Testing for Asymmetry in British, German and US Unemployment Data," IZA Discussion Papers 341, Institute for the Study of Labor (IZA).
  9. Gil Epstein, 2009. "Willingness to Assimilate and Ethnicity," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 35, pages 1.

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