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Intergenerational Mobility of Immigrants in Germany: Moving with Natives or Stuck in their Neighborhoods?

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  • Yuksel, Mutlu

    (Dalhousie University)

Abstract

In this paper, I analyze intergenerational mobility of immigrants and natives in Germany. Using the German Socioeconomic Panel (GSOEP), I find intergenerational elasticities that range from 0.19 to 0.26 for natives and from 0.37 to 0.40 for immigrants. These elasticity estimates are lower than typically found for the U.S. and imply higher mobility in Germany than in the U.S. However, as in the U.S., I find greater mobility among German natives than among immigrants. Moreover, I investigate to what extent the lower mobility among immigrants in Germany is due to “ethnic capital” as suggested by Borjas (1992). I find that the impact of father’s earnings on son’s earnings remains virtually unchanged when including a measure of ethnic capital, suggesting that the higher father-son correlation found among immigrants is not due to omitting ethnic capital. However, I do find a large independent effect of ethnic capital on sons’ earnings (the coefficient is 0.81 as opposed to 0.25 found by Borjas (1992)). These results are consistent with estimates from Microcensus data, where the combined effect of parents’ and ethnic capital is close to unity. Thus, contrary to the U.S. results which suggest convergence of immigrants’ earnings towards natives’ earnings, the German results suggest divergence of immigrant earnings.

Suggested Citation

  • Yuksel, Mutlu, 2009. "Intergenerational Mobility of Immigrants in Germany: Moving with Natives or Stuck in their Neighborhoods?," IZA Discussion Papers 4677, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4677
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    1. George J. Borjas, 2021. "Ethnicity, Neighborhoods, and Human-Capital Externalities," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 7, pages 135-160, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Schnitzlein, Daniel D., 2014. "How Important Is the Family? Evidence from Sibling Correlations in Permanent Earnings in the USA, Germany, and Denmark," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(1), pages 69-89.
    2. Kugler, Adriana D. & Akbulut-Yuksel, Mevlude, 2016. "Intergenerational Persistence of Health in the U.S.: Do Immigrants Get Healthier as they Assimilate?," CEPR Discussion Papers 11100, C.E.P.R. Discussion Papers.
    3. Daniel D. Schnitzlein, 2016. "A New Look at Intergenerational Mobility in Germany Compared to the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 650-667, December.
    4. repec:zbw:rwirep:0283 is not listed on IDEAS
    5. Mevlude Akbulut-Yuksel & Belgi Turan, 2013. "Left behind: intergenerational transmission of human capital in the midst of HIV/AIDS," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1523-1547, October.
    6. René Böheim & Christina Judmayr, 2014. "Chancengleichheit in Österreich," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 134, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    7. Junwu, Xu & Zhaoxiong, Chen & Junjie, Wu, 2022. "Return of migrant workers, educational investment in children and intergenerational mobility in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 997-1009.
    8. Akbulut-Yuksel, Mevlude & Kugler, Adriana D., 2016. "Intergenerational persistence of health: Do immigrants get healthier as they remain in the U.S. for more generations?," Economics & Human Biology, Elsevier, vol. 23(C), pages 136-148.
    9. Paul Hufe & Andreas Peichl & Daniel Weishaar, 2018. "Intergenerational Income Stability: Is Germany Lagging Behind?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(20), pages 20-28, October.
    10. Flake, Regina, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers 283, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Flake, Regina, 2013. "Gender Differences in the Earnings Mobility of Migrants," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(1), pages 58-79.
    12. Regina Flake, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers 0283, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    13. Thomas Gries & Margarete Redlin & Moonum Zehra, 2022. "Educational Assimilation of First-Generation and Second-Generation Immigrants in Germany," Journal of International Migration and Integration, Springer, vol. 23(2), pages 815-845, June.

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    More about this item

    Keywords

    immigration; intergenerational mobility; natives; ethnic capital;
    All these keywords.

    JEL classification:

    • 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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