Intergenerational Mobility, Human Capital Transmission and the Earnings of Second-Generation Immigrants in Sweden
32 Pages Posted: 30 Jan 2006
Date Written: January 2006
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
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