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Human capital transmission and the earnings of second-generation immigrants in Sweden

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  • Mats Hammarstedt

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  • Mårten Palme

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Abstract

We compare the earnings and the intergenerational earnings mobility of immigrants with natives in Sweden. We find an overall convergence in average earnings between immigrants and natives across generations. This convergence hides a divergence in average earnings between groups of immigrants with different ethnic origins. We also find that, on average, immigrants have lower intergenerational earnings mobility within groups with similar ethnic backgrounds. Immigrant groups with relatively low intergenerational earnings mobility increased their average relative earnings in the second generation. The interpretation of this is that immigrant groups with a high degree of intergenerational transmission of human capital from parent to offspring improve their position on the labor market across generations. Copyright Hammarstedt and Palme; licensee Springer. 2012

Suggested Citation

  • Mats Hammarstedt & Mårten Palme, 2012. "Human capital transmission and the earnings of second-generation immigrants in Sweden," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-23, December.
    • Handle: RePEc:spr:izamig:v:1:y:2012:i:1:p:1-23:10.1186/2193-9039-1-4
    DOI: 10.1186/2193-9039-1-4
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    References listed on IDEAS

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    1. 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, Stockholm University, Swedish Institute for Social Research.
    2. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters,in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
    3. Borjas, George J, 1993. "The Intergenerational Mobility of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 113-135, January.
    4. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    6. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
    7. Bjorklund, Anders & Chadwick, Laura, 2003. "Intergenerational income mobility in permanent and separated families," Economics Letters, Elsevier, vol. 80(2), pages 239-246, August.
    8. 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;European Society for Population Economics, vol. 16(4), pages 787-814, November.
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    Citations

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    Cited by:

    1. Sweetman, A. & van Ours, J.C., 2014. "Immigration : What About the Children and Grandchildren?," Discussion Paper 2014-009, Tilburg University, Center for Economic Research.
    2. 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.
    3. Susan Niknami, 2016. "Intergenerational transmission of education among female immigrants," Review of Economics of the Household, Springer, vol. 14(3), pages 715-744, September.
    4. Bonin, Holger, 2017. "Report No. 75: The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute for the Study of Labor (IZA).
    5. Bhalotra, Sonia R. & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2016. "Infant Health, Cognitive Performance and Earnings: Evidence from Inception of the Welfare State in Sweden," IZA Discussion Papers 10339, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    J15; J24; J61; J62; Intergenerational income mobility; Intergenerational earnings correlation; Becker-Tomes model; Ethnic capital;

    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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