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Inter- and Intra-Marriage Premiums Revisited: It’s probably who you are, not who you marry!

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  • Nekby, Lena

    ()
    (Stockholm University Linnaeus Center for Integration Studies - SULCIS)

Abstract

For immigrants, intermarriage with natives is assumed to have an assimilating role due to the enhancement of local human capital such a union creates in the form of improved knowledge about host country institutions, language and customs as well as access to native spouses’ networks and contacts. However, marriage choice is endogenous, unobserved factors influence who we marry and our labor market outcomes. This study uses panel data on immigrants and their spouses in Sweden to estimate marriage premiums taking into account individual heterogeneity. This is done for three types of marriages; intermarriage to natives and intra-marriage with immigrants from home countries as well as or other (non-Swedish) countries. A staggered fixed effects model is estimated separately for each marriage type to further disentangle a causal effect of intermarriage (intra-marriage) on annual income from any remaining positive selection effects into respective marriage type. Results from fixed effects estimation indicate that all types of marriage (with one exception) yield positive marriage premiums of similar magnitude. Significant pre-marriage income growth and a lack of post-marriage income growth for those that marry natives suggest that intermarriage premiums are largely due to selection.

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Bibliographic Info

Paper provided by Stockholm University Linnaeus Center for Integration Studies - SULCIS in its series SULCIS Working Papers with number 2010:12.

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Length: 34 pages
Date of creation: 16 Nov 2010
Date of revision:
Handle: RePEc:hhs:sulcis:2010_012

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Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden
Web page: http://www.su.se/sulcis
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Keywords: Intermarriage; Intra-marriage; Income; Immigration; Assimilation; Gender;

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References

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  1. Delia Furtado, 2006. "Human Capital and Interethnic Marriage Decisions," Working papers, University of Connecticut, Department of Economics 2006-03, University of Connecticut, Department of Economics.
  2. Edin, P.-A. & Fredriksson, P. & Aslund, O., 2000. "Evidence from a Natural Experiment," Papers, Uppsala - Working Paper Series 2000-21, Uppsala - Working Paper Series.
  3. Stevenson, Betsey & Wolfers, Justin, 2003. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," Research Papers, Stanford University, Graduate School of Business 1828, Stanford University, Graduate School of Business.
  4. Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 34(4), pages 1066-1099, November.
  5. Furtado, Delia, 2009. "Cross-Nativity Marriages and Human Capital Levels of Children," IZA Discussion Papers 3931, Institute for the Study of Labor (IZA).
  6. Mahmood Arai & Peter Skogman Thoursie, 2009. "Renouncing Personal Names: An Empirical Examination of Surname Change and Earnings," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 27(1), pages 127-147, 01.
  7. Furtado, Delia & Theodoropoulos, Nikolaos, 2010. "Why Does Intermarriage Increase Immigrant Employment? The Role of Networks," IZA Discussion Papers 5080, Institute for the Study of Labor (IZA).
  8. Olof Åslund & Peter Fredriksson, 2009. "Peer Effects in Welfare Dependence: Quasi-Experimental Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  9. Xin Meng & Dominique Meurs, 2009. "Intermarriage, language, and economic assimilation process: A case study of France," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 30(1/2), pages 127-144, May.
  10. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 705-27, September.
  11. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 23(1), pages 135-176, January.
  12. Per-Anders Edin & Peter Fredriksson & Olof �slund, 2003. "Ethnic Enclaves And The Economic Success Of Immigrants - Evidence From A Natural Experiment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(1), pages 329-357, February.
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Cited by:
  1. Andrén, Daniela & Andrén, Thomas, 2013. "State dependence in Swedish social assistance," Working Papers, Örebro University, School of Business 2013:7, Örebro University, School of Business.
  2. Delia Furtado & Stephen Trejo, 2012. "Interethnic Marriages and their Economic Effects," CReAM Discussion Paper Series 1205, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Irastorza, Nahikari & Bevelander, Pieter, 2014. "Economic Integration of Intermarried Labour Migrants, Refugees and Family Migrants to Sweden: Premium or Selection?," IZA Discussion Papers 8065, Institute for the Study of Labor (IZA).

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