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Occupational Choice Across Generations

  • Constant, Amelie F.

    ()

    (George Washington University, Temple University)

  • Zimmermann, Klaus F.

    ()

    (IZA and University of Bonn)

There are few studies on occupational choices in Germany, and the second generation occupational choice and mobility is even less investigated. Such research is important because occupations determine success in the labor market. In a country like Germany occupations also reflect a general socio-economic standing. This paper looks at the patterns of employment in Germany, analyzes how individual men and women access jobs given their family background, and investigates why men and women have different occupational distributions. Based on the German Socio-Economic Panel we estimate multinomial logit models of occupational choice for the children of immigrants as well as for the natives. Our findings are surprisingly similar for both natives and immigrants. For both Germans and immigrants, we find that gender significantly and differentially affects occupational choice, and that individuals with more education choose higher ranking jobs. The role of experience is important for natives and qualified individuals only. Germans are more likely to choose occupations similar to their fathers’ occupation when their father is in the white collar or professional category. In stark contrast, the immigrants’ occupational choice is more influenced by their mother’s education and not by their fathers’ occupation.

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File URL: http://ftp.iza.org/dp975.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 975.

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Length: 32 pages
Date of creation: Dec 2003
Date of revision:
Publication status: published in: Applied Economics Quarterly, 2003, 49 (4), 299-317
Handle: RePEc:iza:izadps:dp975
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
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  1. Ermisch, John & Francesconi, Marco, 2000. "The effect of parents' employment on children's educational attainment," ISER Working Paper Series 2000-31, Institute for Social and Economic Research.
  2. Black, Sandra & Devereux, Paul J. & Salvanes, Kjell G, 2003. "Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital," CEPR Discussion Papers 4150, C.E.P.R. Discussion Papers.
  3. Kenneth A. Couch & Thomas A. Dunn, 1995. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Discussion Papers of DIW Berlin 111, DIW Berlin, German Institute for Economic Research.
  4. Schmidt, Peter & Strauss, Robert P, 1975. "The Prediction of Occupation Using Multiple Logit Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 471-86, June.
  5. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
  6. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
  7. Ira N. Gang & Klaus F. Zimmermann, 1999. "Is Child Like Parent? Educational Attainment and Ethnic Origin," Departmental Working Papers 199614, Rutgers University, Department of Economics.
  8. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," NBER Working Papers 10066, National Bureau of Economic Research, Inc.
  9. Zimmermann, Klaus F., 1998. "German Job Mobility and Wages," IZA Discussion Papers 4, Institute for the Study of Labor (IZA).
  10. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  11. Boskin, Michael J, 1974. "A Conditional Logit Model of Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 389-98, Part I, M.
  12. Donna K. Ginther & Robert A. Pollak, 2000. "Does family structure affect children's educational outcomes?," Working Paper 2000-13, Federal Reserve Bank of Atlanta.
  13. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA).
  14. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  15. 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.
  16. Philip Oreopoulos & Marianne E. Page & Ann Huff Stevens, 2003. "Does Human Capital Transfer from Parent to Child? The Intergenerational Effects of Compulsory Schooling," NBER Working Papers 10164, National Bureau of Economic Research, Inc.
  17. Gary Solon & Mary Corcoran & GRoger Gordon & Deborah Laren, 1991. "A Longitudinal Analysis of Sibling Correlations in Economic Status," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 509-534.
  18. Harper, Barry & Haq, Mohammad, 1997. "Occupational Attainment of Men in Britain," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 638-50, October.
  19. Behrman, Jere R & Taubman, Paul, 1990. "The Intergenerational Correlation between Children's Adult Earnings and Their Parents' Income: Result from the Michigan Panel Survey of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-27, June.
  20. 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.
  21. Cristina Iannelli, 2002. "Parental Education and Young People's Educational and Labour Market Outcomes: A Comparison across Europe," MZES Working Papers 45, MZES.
  22. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA).
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