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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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    Cited by:

    1. Epstein, Gil S. & Mealem, Yosef, 2010. "Interactions between Local and Migrant Workers at the Workplace," IZA Discussion Papers 5051, Institute of Labor Economics (IZA).
    2. Kohns, Stephan, 2001. "Testing for Asymmetry in British, German and US Unemployment Data," IZA Discussion Papers 341, Institute of Labor Economics (IZA).
    3. 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.
    4. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    5. repec:diw:diwwpp:dp395 is not listed on IDEAS
    6. Gil S. Epstein & Renana Lindner Pomerantz, 2013. "Assimilation through Marriage," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 191-203, May.
    7. 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.
    8. 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.
    9. Moriconi, Simone & Peri, Giovanni & Turati, Riccardo, 2025. "Analyzing political preferences of second-generation immigrants across the rural–urban divide," Journal of Urban Economics, Elsevier, vol. 146(C).
    10. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute of Labor Economics (IZA).
    11. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 22, pages 411-431, Edward Elgar Publishing.
    12. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    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, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    14. Gil Epstein, 2009. "Willingness to Assimilate and Ethnicity," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 35, pages 1-1.

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    JEL classification:

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

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