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

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  • Mats Hammarstedt
  • Mårten Palme

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 and Development, 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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    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. Bratu, Cristina & Bolotnyy, Valentin, 2023. "Immigrant intergenerational mobility: A focus on childhood environment," European Economic Review, Elsevier, vol. 151(C).
    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. Sonia Bhalotra & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2022. "Infant Health, Cognitive Performance, and Earnings: Evidence from Inception of the Welfare State in Sweden," The Review of Economics and Statistics, MIT Press, vol. 104(6), pages 1138-1156, November.
    5. Kevin André Pineda-Hernández & François Rycx & Mélanie Volral, 2022. "Moving Up the Social Ladder? Wages of First- and Second-Generation Immigrants from Developing Countries," Working Papers CEB 22-012, ULB -- Universite Libre de Bruxelles.
    6. Susan Niknami, 2016. "Intergenerational transmission of education among female immigrants," Review of Economics of the Household, Springer, vol. 14(3), pages 715-744, September.
    7. Fatimah, Alfariany Milati & Kofol, Chiara, 2023. "Migrating for children’s better future: Intergenerational mobility of internal migrants’ children in Indonesia," Journal of Asian Economics, Elsevier, vol. 86(C).
    8. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    9. van Elk, Roel & Jongen, Egbert L. W. & Koot, Patrick & Zulkarnain, Alice, 2024. "Intergenerational Mobility of Immigrants in the Netherlands," IZA Discussion Papers 17035, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    J15; J24; J61; J62; 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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