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

  • Mats Hammarstedt

    ()

  • Mårten Palme

    ()

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

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File URL: http://hdl.handle.net/10.1186/2193-9039-1-4
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Article provided by Springer in its journal IZA Journal of Migration.

Volume (Year): 1 (2012)
Issue (Month): 1 (December)
Pages: 1-23

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Handle: RePEc:spr:izamig:v:1:y:2012:i:1:p:1-23:10.1186/2193-9039-1-4
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  1. George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
  2. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  3. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  4. George J. Borjas, 1992. "The Intergenerational Mobility of Immigrants," NBER Working Papers 3972, National Bureau of Economic Research, Inc.
  5. 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, vol. 16(4), pages 787-814, November.
  6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
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