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Multi-Generation Model of Immigrant Earnings: Theory and Application

Author

Listed:
  • Gil S. Epstein

    () (Department of Economics, Bar Ilan University)

  • Tikva Lecker

    (Department of Economics, Bar Ilan University)

Abstract

The literature, starting with Chiswick (1977, 1978) to Gang and Zimmermann (2000), more recently, focuses on the economic achievements and performance of first- and second-generation migrants. This paper presents a three-generation migrant analysis, comparing relative economic performance of various migrant generations to one another and to the native population. We developed a theoretical model, which was then explored empirically using data from the 1995 Israeli Census. In both the theoretical and empirical analyses, the curve describing intergenerational immigrant earnings mobility is inversely U-shaped. The second generation earns relatively more than the first and third generations, while the third generation earns less than the second, but more than the first. Thus, assimilation of the third generation into the local population is far from clear.

Suggested Citation

  • Gil S. Epstein & Tikva Lecker, 2001. "Multi-Generation Model of Immigrant Earnings: Theory and Application," Working Papers 2001-06, Bar-Ilan University, Department of Economics.
  • Handle: RePEc:biu:wpaper:2001-06
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    References listed on IDEAS

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    1. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
    2. Corak, Miles & Heisz, Andrew, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch.
    3. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, pages 236-243.
    4. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, pages 393-408.
    5. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, pages 5-21.
    6. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, pages 376-380.
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    Citations

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    Cited by:

    1. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters,in: International Handbook on the Economics of Migration, chapter 22, pages 411-431 Edward Elgar Publishing.
    2. Docquier, Frederic & Rapoport, Hillel, 2004. "Skilled migration: the perspective of developing countries," Policy Research Working Paper Series 3382, The World Bank.
    3. Kohns, Stephan, 2001. "Testing for Asymmetry in British, German and US Unemployment Data," IZA Discussion Papers 341, Institute for the Study of Labor (IZA).
    4. Gil S. Epstein & Ira N. Gang, 2010. "A Political Economy of the Immigrant Assimilation: Internal Dynamics," Working Papers 2010-13, Bar-Ilan University, Department of Economics.
    5. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
    6. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute for the Study of Labor (IZA).
    7. Gil S. Epstein & Renana Lindner Pomerantz, 2013. "Assimilation through Marriage," Review of International Economics, Wiley Blackwell, pages 191-203.
    8. Gil S. Epstein & Erez Siniver, 2012. "Can an ethnic group climb up from the bottom of the ladder?," Economics Bulletin, AccessEcon, vol. 32(3), pages 2414-2441.
    9. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2011. "Immigration Policies and the Ecuadorian Exodus," World Bank Economic Review, World Bank Group, pages 57-76.
    10. Epstein, Gil S. & Mealem, Yosef, 2010. "Interactions between Local and Migrant Workers at the Workplace," IZA Discussion Papers 5051, Institute for the Study of Labor (IZA).
    11. Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 209-233, April.
    12. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," CReAM Discussion Paper Series 1105, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    13. Ekberg, Jan & Hammarstedt, Mats & Shukur, Ghazi, 2007. "SUR estimation of earnings differentials between three generations of immigrants and natives," CAFO Working Papers 2007:7, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
    14. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    15. Gil Epstein, 2009. "Willingness to Assimilate and Ethnicity," Nordic Journal of Political Economy, Nordic Journal of Political Economy, pages 1-1.

    More about this item

    Keywords

    Intergenerational earnings mobility; migration; labor market performance.;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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