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

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  • Hammarstedt, Mats

    (Linnaeus 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.

Suggested Citation

  • Hammarstedt, Mats & Palme, Mårten, 2006. "Intergenerational Mobility, Human Capital Transmission and the Earnings of Second-Generation Immigrants in Sweden," IZA Discussion Papers 1943, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1943
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    2. Nekby, Lena & Rödin, Magnus, 2007. "Acculturation Identity and Labor Market Outcomes," Research Papers in Economics 2007:7, Stockholm University, Department of Economics.
    3. 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.
    4. Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 209-233, April.
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    7. George Messinis, 2009. "Earnings and Languages in the Family: Second-Generation Australians," The Economic Record, The Economic Society of Australia, vol. 85(s1), pages 59-73, September.
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    9. 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.
    10. Adam Alexander Tyrcha, 2020. "The Impact of Migration on a Regulated Rental Market," REGION, European Regional Science Association, vol. 7, pages 35-48.
    11. Chakraborty, Tanika & Schüller, Simone & Zimmermann, Klaus F., 2019. "Beyond the average: Ethnic capital heterogeneity and intergenerational transmission of education," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 551-569.
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    13. 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, Stockholm University, Swedish Institute for Social Research.
    14. Flake, Regina, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers 283, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Chakraborty, Tanika & Nottmeyer, Olga & Schüller, Simone & Zimmermann, Klaus F., 2014. "Beyond the Average: Peer Heterogeneity and Intergenerational Transmission of Education," IZA Discussion Papers 8695, Institute for the Study of Labor (IZA).
    16. Flake, Regina, 2013. "Gender Differences in the Earnings Mobility of Migrants," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(1), pages 58-79.
    17. Renee Luthra & Thomas Soehl, 2015. "From Parent to Child? Transmission of Educational Attainment Within Immigrant Families: Methodological Considerations," Demography, Springer;Population Association of America (PAA), vol. 52(2), pages 543-567, April.
    18. Mats Hammarstedt, 2009. "Intergenerational Mobility and the Earnings Position of First‐, Second‐, and Third‐Generation Immigrants," Kyklos, Wiley Blackwell, vol. 62(2), pages 275-292, April.
    19. Giacomin Favre, 2019. "Bias in social mobility estimates with historical data: evidence from Swiss microdata," ECON - Working Papers 329, Department of Economics - University of Zurich.
    20. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    21. Jan Brenner, 2009. "Life-Cycle Variations in the Association between Current and Lifetime Earnings – Evidence for German Natives and Guest Workers," Ruhr Economic Papers 0095, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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    24. Regina Flake, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers 0283, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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    More about this item

    Keywords

    intergenerational income mobility; intergenerational earnings correlation; Becker-Tomes model; ethnic capital;
    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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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