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Beyond the Origin Dummy: Heterogeneity of Ethnicity and Human Capital Accumulation

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  • Postepska, Agnieszka

    (University of Groningen)

Abstract

Ethnic background is a well recognized complementary factor in human capital accumulation process. This paper investigates how three aspects of ethnicity affect human capital formation: group's quality, size and closeness of ties. Relying on heteroskedasticity to identify parameters in the presence of endogenous regressors, I find evidence of heterogenous effects of ethnicity for men and women. The results show that women in groups characterized by close ties benefit from high-quality ethnic environment, regardless of the group's size. In contrast, among men, the group's size appears to be of importance, and men in large groups characterized by loose ties benefit the most from higher quality of the ethnic group. The results are consistent with different socialization patterns, as evidenced by the literature.

Suggested Citation

  • Postepska, Agnieszka, 2021. "Beyond the Origin Dummy: Heterogeneity of Ethnicity and Human Capital Accumulation," IZA Discussion Papers 14019, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14019
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    References listed on IDEAS

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    1. Philipp Bauer & Regina Riphahn, 2007. "Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(1), pages 121-148, February.
    2. Abdurrahman Aydemir & Wen-Hao Chen & Miles Corak, 2013. "Intergenerational Education Mobility among the Children of Canadian Immigrants," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 107-122, May.
    3. Regina T. Riphahn, 2003. "Cohort effects in the educational attainment of second generation immigrants in Germany: An analysis of census data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 711-737, November.
    4. Slobodan Djajić, 2003. "Assimilation of immigrants: Implications for human capital accumulation of the second generation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 831-845, November.
    5. Lídia Farré & Roger Klein & Francis Vella, 2012. "Does Increasing Parents’ Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(5), pages 676-690, October.
    6. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2003. "The school-to-work transition of 2 nd generation immigrants in Denmark," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 755-786, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    human capital formation; ethnicity; endogamy; networks; identification through conditional second moments;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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