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Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment

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  • von Haaren-Giebel, Friederike

Abstract

This paper assesses educational attainment of immigrant children, in particular evaluating whether naturalised parents invest more in their children's human capital than non-naturalised parents. Findings of the literature indicate that citizenship is associated with lower return migration probability. Since the returns to investments in (country-specific) human capital increase with the duration of residence, naturalised parents may have more incentives to invest in the educational success of their children. I exploit a natural experiment that took place in Germany in the year 2000 that reduced the required years of residence for naturalisation from 15 to 8 and therefore exogenously increased naturalisation. Multivariate estimations (based on the German Socio-Economic Panel) show a positive and significant correlation between parents' citizenship status and their children's educational attainment. Results of difference-in-differences and instrumental variable models are also positive but not significant.

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  • von Haaren-Giebel, Friederike, 2016. "Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment," Hannover Economic Papers (HEP) dp-576, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-576
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    More about this item

    Keywords

    citizenship; integration; education; SOEP;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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