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SUR estimation of earnings differentials between three generations of immigrants and natives

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Abstract

This paper presents a SUR estimation of earnings differentials between three generations of male immigrants and male natives in Sweden. The results show that male first-generation immigrants were at an earnings advantage compared to male natives. Among male second-generation immigrants the earnings differentials compared to natives were very small, while third-generation immigrants were at an earnings disadvantage compared to natives. Thus, the results indicate that ethnic differences in earnings are likely to occur even after several generations spent in a country and that the problem of immigrant assimilation that exists in many European countries may last for several generations.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:vxcafo:2007_007
    Note: All correspondence to: mats.hammarstedt@vxu.se
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    1. Epstein, Gil S & Lecker, Tikva, 2001. "Multi-Generation Model of Immigrant Earnings: Theory and Application," CEPR Discussion Papers 2750, C.E.P.R. Discussion Papers.
    2. Borjas, George J, 1993. "The Intergenerational Mobility of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 113-135, January.
    3. Sloane, Peter J. & Gazioglu, Saziye, 1996. "Immigration and occupational status: A study of Bangladeshi and Turkish fathers and sons in the London labour market," Labour Economics, Elsevier, vol. 3(4), pages 399-424, December.
    4. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
    5. 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.
    6. Lars Behrenz & Mats Hammarstedt & Jonas Månsson, 2007. "Second-Generation Immigrants in the Swedish Labour Market," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 157-174.
    7. George J. Borjas, 2006. "Making it in America: Social Mobility in the Immigrant Population," NBER Working Papers 12088, National Bureau of Economic Research, Inc.
    8. Chib, Siddhartha & Greenberg, Edward, 1995. "Hierarchical analysis of SUR models with extensions to correlated serial errors and time-varying parameter models," Journal of Econometrics, Elsevier, vol. 68(2), pages 339-360, August.
    9. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-380, February.
    10. 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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    Cited by:

    1. Zeebari, Zangin & Shukur, Ghazi, 2012. "On the Least Absolute Deviations Method for Ridge Estimation of SURE Models," HUI Working Papers 69, HUI Research.
    2. Zeebari, Zangin & Shukur, Ghazi, 2009. "Developing Median Regression for SURE Models - with Application to 3-Generation Immigrants’ data in Sweden," Working Paper Series in Economics and Institutions of Innovation 183, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

    More about this item

    Keywords

    Immigrants; Earnings; SUR estimation;

    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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