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

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Author Info

  • Nekby, Lena

    ()
    (Dept. of Economics, Stockholm University)

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 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 postmarriage 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, Department of Economics in its series Research Papers in Economics with number 2010:23.

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Length: 34 pages
Date of creation: 10 Nov 2010
Date of revision:
Handle: RePEc:hhs:sunrpe:2010_0023

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Web page: http://www.ne.su.se/
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Keywords: Intermarriage; Intra-marriage; Income; Immigration; Assimilation; Gender;

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References

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  1. Olof Åslund & Peter Fredriksson, 2009. "Peer Effects in Welfare Dependence: Quasi-Experimental Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  2. Furtado Delia & Theodoropoulos Nikolaos, 2010. "Why Does Intermarriage Increase Immigrant Employment? The Role of Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, November.
  3. repec:iza:izadps:dp1142 is not listed on IDEAS
  4. Betsey Stevenson & Justin Wolfers, 2006. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," The Quarterly Journal of Economics, MIT Press, vol. 121(1), pages 267-288, 02.
  5. 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, vol. 118(1), pages 329-357, February.
  6. Edin, P.-A. & Fredriksson, P. & Aslund, O., 2000. "Evidence from a Natural Experiment," Papers 2000-21, Uppsala - Working Paper Series.
  7. Furtado, Delia, 2009. "Cross-Nativity Marriages and Human Capital Levels of Children," IZA Discussion Papers 3931, Institute for the Study of Labor (IZA).
  8. Furtado, Delia, 2006. "Human Capital and Interethnic Marriage Decisions," IZA Discussion Papers 1989, Institute for the Study of Labor (IZA).
  9. 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, vol. 27(1), pages 127-147, 01.
  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, vol. 87(4), pages 705-27, September.
  11. Meng, Xin & Meurs, Dominique, 2006. "Intermarriage, Language, and Economic Assimilation Process: A Case Study of France," IZA Discussion Papers 2461, Institute for the Study of Labor (IZA).
  12. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January.
  13. Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1066-1099, November.
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Cited by:
  1. 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).
  2. Daniela Andrén & Thomas Andrén, 2013. "State dependence in Swedish social assistance," Discussion Papers 19, Central European Labour Studies Institute (CELSI).
  3. Furtado, Delia & Trejo, Stephen, 2012. "Interethnic Marriages and their Economic Effects," IZA Discussion Papers 6399, Institute for the Study of Labor (IZA).

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