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Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment

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  • Friedericke von Haaren-Giebel

Abstract

This paper assesses educational attainment of immigrant children, in particular evaluating whether naturalised parents invest more in their children’s human capital than non-naturalised parents. Findings of the literature indicate that citizenship is associated with lower return migration probability. Since the returns to investments in (country-specific) human capital increase with the duration of residence, naturalised parents may have more incentives to invest in the educational success of their children. I exploit a natural experiment that took place in Germany in the year 2000 that reduced the required years of residence for naturalisation from 15 to 8 and therefore exogenously increased naturalisation. Multivariate estimations (based on the German Socio-Economic Panel) show a positive and significant correlation between parents’ citizenship status and their children’s educational attainment. Results of difference-in-differences and instrumental variable models are also positive but not significant.

Suggested Citation

  • Friedericke von Haaren-Giebel, 2016. "Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment," SOEPpapers on Multidisciplinary Panel Data Research 854, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp854
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    References listed on IDEAS

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    1. Dominique Meurs & Patrick A. Puhani & Friederike Von Haaren-Giebel, 2017. "Number of siblings and educational choices of immigrant children: evidence from first- and second-generation immigrants," Review of Economics of the Household, Springer, vol. 15(4), pages 1137-1158, December.
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    5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Citizenship; integration; education; SOEP;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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