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Background Matters, but Not Whether Parents Are Immigrants: Outcomes of Children Born in Denmark

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  • Mathias Fjællegaard Jensen
  • Alan Manning

Abstract

In Europe, the children of migrants often have worse economic outcomes than those with local-born parents. This paper shows that children born in Denmark with immigrant parents (first-generation locals) have lower earnings, higher unemployment, less education, more welfare transfers, and more criminal convictions than children with local-born parents. However, when we condition on parental socioeconomic characteristics, first-generation locals generally perform as well or slightly better than the children of locals. While children of immigrants are more likely to come from deprived backgrounds, they do not experience substantially different outcomes conditional on parental background.

Suggested Citation

  • Mathias Fjællegaard Jensen & Alan Manning, 2025. "Background Matters, but Not Whether Parents Are Immigrants: Outcomes of Children Born in Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 17(3), pages 347-379, July.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:3:p:347-79
    DOI: 10.1257/app.20230389
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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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