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

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.

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Paper provided by Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University in its series CAFO Working Papers with number 2007:7.

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Length: 16 pages
Date of creation: 01 Nov 2007
Date of revision:
Handle: RePEc:hhs:vxcafo:2007_007
Note: All correspondence to: mats.hammarstedt@vxu.se
Contact details of provider: Postal: Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University, SE 351 95 Växjö, Sweden
Phone: +46 470 70 87 64
Web page: http://lnu.se/research-groups/cafo?l=en

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  1. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-80, February.
  2. Borjas, George J, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 123-50, February.
  3. George J. Borjas, 2006. "Making it in America: Social Mobility in the Immigrant Population," NBER Working Papers 12088, National Bureau of Economic Research, Inc.
  4. Epstein, Gil S. & Lecker, Tikva, 2001. "Multi-Generation Model of Immigrant Earnings: Theory and Application," IZA Discussion Papers 275, Institute for the Study of Labor (IZA).
  5. 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.
  6. 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.
  7. Lars Behrenz & Mats Hammarstedt & Jonas M�nsson, 2007. "Second-Generation Immigrants in the Swedish Labour Market," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 157-174.
  8. George J. Borjas, 1992. "The Intergenerational Mobility of Immigrants," NBER Working Papers 3972, National Bureau of Economic Research, Inc.
  9. 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.
  10. 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.
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