Families, neighborhoods, and the future: The transition to adulthood of children of native and immigrant origin in Sweden

In this paper, we examine mechanisms that generate gaps in educational attainment and labor market outcomes between children of immigrants and children of native Swedes. Theoretical explanations of how social inequality between generations is (re)produced focus on a relative lack of resources within the family and/or in the broader social environment, particularly in neighborhoods and schools. In the empirical analyses we follow over time all individuals who completed compulsory school during the period 1990 -1995 and analyze what types of background factors have influenced their educational and labor market careers, which are measured for the year 2007. On the basis of our empirical results we conclude that the gaps between children of immigrants and children of native Swedes are mainly generated by differences in various forms of resources in the family of origin. The role of neighborhood segregation is less substantial. Moreover, our results indicate that the gaps in employment are larger than the corresponding gaps in educational attainment. When gainfully employed, children of immigrants born in Sweden follow roughly the same path as children from native families in contrast to children born abroad.