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Intergenerational Mobility, Human Capital Transmission and the Earnings of Second-Generation Immigrants in Sweden

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  • Hammarstedt, Mats

    ()
    (Växjö University)

  • Palme, Mårten

    ()
    (Stockholm University)

Abstract

We compare the intergenerational earnings mobility of immigrants with natives in Sweden. We find an overall convergence in average earnings between immigrants and natives. This convergence hides a divergence in average earnings between groups of immigrants with different ethnic origins. We find that, on average, immigrants have a lower intergenerational earnings mobility, also (on average) within groups with similar ethnic backgrounds. Immigrants with a relatively low intergenerational earnings mobility increased their average earnings more in the second generation, thereby supporting the idea that low intergenerational earnings mobility can be interpreted as a high degree of intergenerational transmission of human capital.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1943.

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Length: 32 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:iza:izadps:dp1943

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Keywords: intergenerational income mobility; intergenerational earnings correlation; Becker-Tomes model; ethnic capital;

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References

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  1. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
  2. Bjorklund, Anders & Chadwick, Laura, 2003. "Intergenerational income mobility in permanent and separated families," Economics Letters, Elsevier, Elsevier, vol. 80(2), pages 239-246, August.
  3. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, American Economic Association, vol. 87(5), pages 1009-18, December.
  4. Borjas, George J, 1993. "The Intergenerational Mobility of Immigrants," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 11(1), pages 113-35, January.
  5. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  7. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center, Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  8. Lindquist, Matthew J. & Böhlmark, Anders, 2005. "Life-Cycle Variations in the Association between Current and Lifetime Income: Country, Cohort and Gender Comparisons," Working Paper Series 4/2005, Swedish Institute for Social Research.
  9. Borjas, George J, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(1), pages 123-50, February.
  10. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, American Economic Association, vol. 82(3), pages 393-408, June.
  11. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, Elsevier, vol. 32(3), pages 385-397, August.
  12. Dan-Olof Rooth & Jan Ekberg, 2003. "Unemployment and earnings for second generation immigrants in Sweden. Ethnic background and parent composition," Journal of Population Economics, Springer, Springer, vol. 16(4), pages 787-814, November.
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Citations

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Cited by:
  1. Nekby, Lena & Rödin, Magnus, 2007. "Acculturation Identity and Labor Market Outcomes," Research Papers in Economics, Stockholm University, Department of Economics 2007:7, Stockholm University, Department of Economics.
  2. Abdurrahman Aydemir & Wen-Hao Chen & Miles Corak, 2013. "Intergenerational Education Mobility among the Children of Canadian Immigrants," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 107-122, May.
  3. George Messinis, 2009. "Earnings and Languages in the Family: Second-Generation Australians," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 85(s1), pages S59-S73, 09.
  4. Mevlude Akbulut-Yuksel & Belgi Turan, 2013. "Left behind: intergenerational transmission of human capital in the midst of HIV/AIDS," Journal of Population Economics, Springer, Springer, vol. 26(4), pages 1523-1547, October.
  5. Björklund, Anders, 2006. "Family Background and Outcomes Later in Life: A (Partial and Personal) Survey of Recent Research Using Swedish Register Data," Working Paper Series 4/2007, Swedish Institute for Social Research.
  6. Christian Dustmann & Nikolaos Theodoropoulos, 2006. "Ethnic Minority Immigrants and their Children in Britain," CReAM Discussion Paper Series 0610, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. Brenner, Jan, 2010. "Life-cycle variations in the association between current and lifetime earnings: Evidence for German natives and guest workers," Labour Economics, Elsevier, Elsevier, vol. 17(2), pages 392-406, April.
  8. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University 2007:4, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
  9. Regina Flake, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0283, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  10. Aycan, Çelikaksoy & Lena, Nekby & Saman, Rashid, 2009. "Assortative Mating by Ethnic Background and Education in Sweden: The Role of Parental Composition on Partner Choice," SULCIS Working Papers 2009:7, Stockholm University Linnaeus Center for Integration Studies - SULCIS.

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