Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia

This study investigates the role of intergenerational mobility in explaining the native-immigrant income gap in Estonia. A rich registry dataset on yearly earnings and different background characteristics for the period of 2007–2017 is used. We find that an increase of 1 percentile in parent income...

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Autores principales:	Laura Helena Kivi, Janno Järve, Sten Anspal, Marko Sõmer, Indrek Seppo
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	intergenerational mobility immigrants income gap decomposition Public finance K4430-4675 Economic growth, development, planning HD72-88
Acceso en línea:	https://doaj.org/article/01f686b0c4944747b3da1082bf159dc2
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spelling	oai:doaj.org-article:01f686b0c4944747b3da1082bf159dc22021-11-04T15:00:42ZAre we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia1406-099X2334-438510.1080/1406099X.2021.1993601https://doaj.org/article/01f686b0c4944747b3da1082bf159dc22021-07-01T00:00:00Zhttp://dx.doi.org/10.1080/1406099X.2021.1993601https://doaj.org/toc/1406-099Xhttps://doaj.org/toc/2334-4385This study investigates the role of intergenerational mobility in explaining the native-immigrant income gap in Estonia. A rich registry dataset on yearly earnings and different background characteristics for the period of 2007–2017 is used. We find that an increase of 1 percentile in parent income rank is associated with on average 0.2 percentile increase in child income rank for both natives and second-generation immigrants. Results from a detailed Blinder-Oaxaca decomposition indicate that up to 21% of the gap between income ranks of second-generation immigrants and natives is related to differences in parental background. Once we control for education, family, residence and industry related choices, differences in the parental income rank account for around 8% of the overall gap. The results indicate that although the intergenerational income mobility is relatively high in Estonia both for natives and children of foreign-born, the native-immigrant earnings gap has not decreased for the second generation.Laura Helena KiviJanno JärveSten AnspalMarko SõmerIndrek SeppoTaylor & Francis Grouparticleintergenerational mobilityimmigrantsincome gapdecompositionPublic financeK4430-4675Economic growth, development, planningHD72-88ENBaltic Journal of Economics, Vol 21, Iss 2, Pp 157-182 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	intergenerational mobility immigrants income gap decomposition Public finance K4430-4675 Economic growth, development, planning HD72-88
spellingShingle	intergenerational mobility immigrants income gap decomposition Public finance K4430-4675 Economic growth, development, planning HD72-88 Laura Helena Kivi Janno Järve Sten Anspal Marko Sõmer Indrek Seppo Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
description	This study investigates the role of intergenerational mobility in explaining the native-immigrant income gap in Estonia. A rich registry dataset on yearly earnings and different background characteristics for the period of 2007–2017 is used. We find that an increase of 1 percentile in parent income rank is associated with on average 0.2 percentile increase in child income rank for both natives and second-generation immigrants. Results from a detailed Blinder-Oaxaca decomposition indicate that up to 21% of the gap between income ranks of second-generation immigrants and natives is related to differences in parental background. Once we control for education, family, residence and industry related choices, differences in the parental income rank account for around 8% of the overall gap. The results indicate that although the intergenerational income mobility is relatively high in Estonia both for natives and children of foreign-born, the native-immigrant earnings gap has not decreased for the second generation.
format	article
author	Laura Helena Kivi Janno Järve Sten Anspal Marko Sõmer Indrek Seppo
author_facet	Laura Helena Kivi Janno Järve Sten Anspal Marko Sõmer Indrek Seppo
author_sort	Laura Helena Kivi
title	Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
title_short	Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
title_full	Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
title_fullStr	Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
title_full_unstemmed	Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia
title_sort	are we there yet? intergenerational mobility and economic assimilation of second-generation immigrants in estonia
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/01f686b0c4944747b3da1082bf159dc2
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Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia

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