Intergenerational Mobility, Human Capital Transmission and the Earnings of Second-Generation Immigrants in Sweden

32 Pages Posted: 30 Jan 2006

See all articles by Mats Hammarstedt

Mats Hammarstedt

Växjö University - School of Management and Economics

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Date Written: January 2006

Abstract

We compare the intergenerational earnings mobility of immigrants with natives in Sweden. We find an overall convergence in average earnings between immigrants and natives. This convergence hides a divergence in average earnings between groups of immigrants with different ethnic origins. We find that, on average, immigrants have a lower intergenerational earnings mobility, also (on average) within groups with similar ethnic backgrounds. Immigrants with a relatively low intergenerational earnings mobility increased their average earnings more in the second generation, thereby supporting the idea that low intergenerational earnings mobility can be interpreted as a high degree of intergenerational transmission of human capital.

Keywords: intergenerational income mobility, intergenerational earnings correlation, Becker-Tomes model, ethnic capital

JEL Classification: J15, J24, J61, J62

Suggested Citation

Hammarstedt, Mats and Palme, Marten, Intergenerational Mobility, Human Capital Transmission and the Earnings of Second-Generation Immigrants in Sweden (January 2006). IZA Discussion Paper No. 1943, Available at SSRN: https://ssrn.com/abstract=879755

Mats Hammarstedt

Växjö University - School of Management and Economics ( email )

SE 351 95 Vaxjo
Sweden
0470-70 88 48 (Phone)
0470-824 78 (Fax)

HOME PAGE: http://www.vxu.se/(sv)/ehv/org/personal/hem/mhammarstedt/

Marten Palme (Contact Author)

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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