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Multi-generation model of immigrant earnings: theory and application

In: The Economics of Immigration and Social Diversity

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  • Joseph Deutsch
  • Gil S. Epstein
  • Tikva Lecker

Abstract

This paper presents a three-generation migrant analysis, comparing the relative economic performance of various migrant generations to the native population. We develop a theoretical model to explain the relationship between the different earnings of the migrants over three generations and relate the model to the results in the literature. The empirical analysis explores the suitability of the theoretical implications based on data from the 1995 Israeli Census. We show that assimilation of the third generation into the local population is far from clear.

Suggested Citation

  • Joseph Deutsch & Gil S. Epstein & Tikva Lecker, 2006. "Multi-generation model of immigrant earnings: theory and application," Research in Labor Economics, in: The Economics of Immigration and Social Diversity, pages 217-234, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(05)24007-4
    DOI: 10.1016/S0147-9121(05)24007-4
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    1. Heisz, Andrew & Corak, Miles, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch.
    2. George J. Borjas, 2021. "Ethnic Capital And Intergenerational Mobility," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 6, pages 107-134, World Scientific Publishing Co. Pte. Ltd..
    3. Miles Corak & Andrew Heisz, 1998. "The Intergenerational Earnings and Income Mobility of Canadian," Labor and Demography 9808001, University Library of Munich, Germany.
    4. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    5. Melissa Binder, 1998. "Family background, gender and schooling in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 54-71.
    6. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    7. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-380, February.
    8. Sherrie A. Kossoudji, 1989. "Immigrant Worker Assimilation: Is It a Labor Market Phenomenon?," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 494-527.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Cited by:

    1. Gil S. Epstein & Ira N. Gang, 2010. "A Political Economy of the Immigrant Assimilation: Internal Dynamics," Working Papers 2010-13, Bar-Ilan University, Department of Economics.
    2. Gil S. Epstein & Erez Siniver, 2012. "Can an ethnic group climb up from the bottom of the ladder?," Economics Bulletin, AccessEcon, vol. 32(3), pages 2414-2441.
    3. Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 209-233, April.
    4. Epstein, Gil S. & Mealem, Yosef, 2010. "Interactions between Local and Migrant Workers at the Workplace," IZA Discussion Papers 5051, Institute of Labor Economics (IZA).
    5. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 22, pages 411-431, Edward Elgar Publishing.
    6. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    7. Ekberg, Jan & Hammarstedt, Mats & Shukur, Ghazi, 2007. "SUR estimation of earnings differentials between three generations of immigrants and natives," CAFO Working Papers 2007:7, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    8. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute of Labor Economics (IZA).
    9. Gil S. Epstein & Renana Lindner Pomerantz, 2013. "Assimilation through Marriage," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 191-203, May.
    10. Kohns, Stephan, 2001. "Testing for Asymmetry in British, German and US Unemployment Data," IZA Discussion Papers 341, Institute of Labor Economics (IZA).
    11. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    12. Gil Epstein, 2009. "Willingness to Assimilate and Ethnicity," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 35, pages 1-1.

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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