Paying off the intergenerational debt: How and why children of immigrants status-strive at work

Children of immigrants, referred to as second-gens, are the fastest growing segment of the labor force in developed countries. Yet, their unique workplace experiences, behaviors, and outcomes remain conspicuously absent in management scholarship. In this paper, we explore why second-gens employees, despite their disadvantaged upbringings, consistently outperform children of native-born parents, referred to as third-gens. Drawing on psychological contract theory, we argue that this paradoxical phenomenon is explained by the immigrant bargain—a unique psychological contract whereby the sacrifices of the immigrant parents are expected to be redeemed and validated by the success of the second-gen child. Formed early in life, this bargain fosters a sense of indebtedness, motivating second-gens to strive for higher organizational status (i.e., pay raise, promotion) and higher societal status (i.e., income, occupational status) as means of repaying their parents. Across seven studies using American and European samples, we provide robust evidence supporting our theoretical model. This work advances research on immigrant generations in organizations and enhances our understanding of how psychological contracts outside of work spillover to affect behaviors inside the workplace.