Self‐Selection and Economic Assimilation of Immigrants: The Case of Iranian Immigrants Arriving to Three Countries During 1979–1985

The study is designed to evaluate the impact of the interaction between patterns of immigrants' self‐selection and the context of reception at destinations on economic assimilation of Iranian immigrants who came to three countries during 1979–1985. For that purpose, we studied immigrants at the age of 22 or higher upon arrival by utilizing the 5 percent 1990 and 2000 Public Use Microdata files (PUMS) of the United States census, the 20 percent demographic samples of the 1983 and 1995 Israeli censuses of population, and the 1990 and 2000 Swedish registers. The results indicate that the “most qualified” immigrants – both on observed and unobserved variables – who left Iran right after the Islamic revolution, arrived in the US Their positive self‐selection led them to reach complete earnings assimilation with natives there. Iranian immigrants who arrived in Israel and Sweden did not achieve full earnings assimilation with natives. Of these two groups, a smaller immigrant‐to‐native gap in average earnings was found in Sweden, but in the same time Iranian immigrants in Israel were more positively self‐selected and showed better assimilation than their counterparts in Sweden. Market structure played a certain role in immigrants' earnings assimilation mainly in Sweden.     

Low-skilled immigrant entrepreneurship

More than ? of the foreign born workforce in the US have no schooling beyond high school and about 20% of the low-skilled workforce are immigrants. More than 10% of these low-skilled immigrants are self-employed. Utilizing longitudinal data from the 1996, 2001 and 2004 Survey of Income and Program Participation panels, this paper analyzes the returns to self-employment among low-skilled immigrants. We find that the returns to low-skilled self-employment among immigrants is higher than it is among natives but also that wage/salary employment is a more financially rewarding option for most low-skilled immigrants. In analyses of earnings differences, we find that most of the 20% male native-immigrant earnings gap among low-skilled business owners can be explained primarily by differences in the ethnic composition. Low-skilled female foreign born entrepreneurs are found to have earnings roughly equal to otherwise observationally similar self-employed native born women.     

Immigrants in the Old‐Age Pension System: The Case of Sweden

The article investigates incomes and especially state pensions 2008 among elderly immigrants who arrived in Sweden before 1970. At age 70 and above, the level of state old‐age pension for immigrant men was nearly the same and for immigrant women somewhat higher than for natives with similar characteristics. At age 65–66 the state pension was lower for immigrants than for their native counterparts. The differences in pensions for immigrants of different ages are probably due to changed rules in the Swedish state old‐age pension system from 2003. The new rules have hit different age groups in different ways. The gaps are partially levelled out when other incomes are included. The extent to which levelling occurs varies greatly between different immigrant groups. For immigrants who have arrived during the last decades, the future state old‐age pension outcomes are expected to be worse.

Policy Implications

• The Swedish Pensions Agency should set up a register of pensions from abroad. This will tell us to what extent old‐age pensions from the home country compensate for low old‐age pensions from the Swedish system.
• Better integration on the labour market is a powerful measure for reducing the risk of future low pensions among immigrants. This is a challenge for Swedish integration policy.
• To what extent can other parts of the Swedish welfare system in the future compensate individuals with low old‐age pensions?

     

Self-employed immigrants and their employees: evidence from Swedish employer-employee data

We present a study of the employees of self-employed immigrants with unincorporated firms in Sweden using matched employer-employee data from 2014. Non-European immigrants are more likely than natives to have employees in their firms. Furthermore, immigrants, especially non-European immigrants, are more likely than natives to employ immigrants in their firms, and non-European immigrants are most likely to employ recently arrived non-European immigrants with low education in their firms. Males are more likely than females to have employees in their firms, but self-employed females are more likely than self-employed males to have female employees. This is the case for all immigrant groups as well as for natives. We conclude that self-employed immigrants play a role in the labour market integration process since they create employment opportunities for immigrant groups that have difficulty entering the labour market.

     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

Neighborhood and School Factors in the School Performance of Immigrants’ Children1

This article examines the effects of neighborhoods and schools on the achievement gaps between adolescents of different nativities and ethnicities. We show that neighborhood and school conditions are better for natives’ than for immigrants’ children, and they are the worst for Hispanic immigrants. Using cross‐classified hierarchical models, we find that introducing neighborhood and school characteristics helps to account for the disadvantage of Mexican immigrants’ children but to reveal the advantage of Filipino immigrants’ children, compared to native non‐Hispanic Whites. Neighborhood and school effects are not universal: they influence school performance of immigrants’ children more than that of natives’ children.     

Transmission of self-employment across immigrant generations: the importance of ethnic background and gender

This paper studies the intergenerational transmissions of self-employment abilities among immigrants in Sweden. The results show that second-generation immigrants are over-represented in self-employment compared to natives. Male immigrants from countries neighbouring to Sweden and natives alike seem to use both mothers and fathers as role models in their self-employment decision, but the father is the stronger role model among male immigrants from more geographically distant regions. Female immigrants use both their father and their mother as role models in their self-employment decision. Furthermore, male immigrants and male natives tend to become self-employed in the same business sector as their fathers; female immigrants and female natives with self-employed parents are over-represented in self-employment but not necessarily in the same business sector as their parents.     

Immigration,labor force integration and the pursuit of self-employment

A correspondence analysis was used to examine the entire working life cycle of Canadian-born male age-education cohorts and immigrant male age-education cohorts who arrived during 1945-61. Data were drawn from the 1961 and 1971 census databases as well as the 1981 and 1991 public individual files. Findings support the existence of a split labor market based on immigrant status, particularly at the low end of the schooling spectrum. In 1961, immigrants with low levels of schooling were closely associated with the wage construction sector, whereas Canadian-born males below the high school level would most likely gravitate towards consumer services. Meanwhile, immigrants with a high school education were likely to be in consumer services; whereas, Canadian-born males with a high school education were closely aligned with public administration and distributive services. Moreover, immigrants with higher levels of schooling were less likely to work in ethnically dominated markets, while immigrants with low schooling moved into the self-employed construction sector. The existence of a split in the labor market was evident among workers with lower levels of schooling compared with university-educated workers.     

Constrict in the School Context

Constrict theory states that, in the short run, ethnic diversity in any context lowers both the quantity and the quality of interpersonal contacts. We test this theory in the school context, expecting that ethnic school diversity yields fewer and lower quality friendships. Moreover, we investigate whether the associations hold when controlling for the school's socioeconomic situation, and whether the relations between ethnic school diversity and the social outcomes differ between natives and immigrants. Multilevel analyses on data from the Flemish Educational Assessment, consisting of 10,546 natives and 1,324 immigrants in 85 secondary schools, show that ethnic diversity yields fewer friendships and a lower attachment to friends. However, this appears to be due to the schools’ socioeconomic composition. For immigrants, moreover, a higher ethnic diversity yields more friendships and a higher attachment to friends. Implications for theory and practice are discussed.     

Investigating the link between migration and civicness in Italy. Which individual and school factors matter?

This paper investigates the link between migration and civicness using data on cognitive skills and civic competences collected from a sample of 2747 eighth-graders in Italy. Contrary to the abundant evidence of migrant/native gaps in educational and occupational attainments in the country, this study finds no migrant-specific gap on civicness development. Children of immigrants achieve lower levels of civic knowledge than natives, but differences disappear once social background and, particularly, cognitive test scores are equalized across groups. Moreover, no differences are found, on average, between natives and children of immigrants with respect to institutional trust. However, at the top tail of the civic knowledge distribution, children of immigrants display less trust than natives. This result, coupled with their greater openness towards immigrants’ rights, suggests that immigrants’ children attach great importance to the inequality in rights concerning the immigrant population in the country and, as a reaction, participate more actively in the community. Insignificant or positive associations between the proportion of immigrants’ children in the classroom and natives’ civicness are found. Finally, fairness in student–teacher interactions is found to improve students’ civicness development, suggesting that, besides citizenship education, also the school climate plays a vital role in enhancing children's civic competences.     

Ethnic Enclaves,Networks and Self‐Employment among Middle Eastern Immigrants in Sweden

The proportion of immigrants from countries in the Middle East living in Sweden has increased since the 1970s, and it is a well‐known fact that immigrants from the Middle East suffer from low earnings and high rates of unemployment on the Swedish labour market. There are often great hopes that self‐employment will enable immigrants to improve their labour market situation. Further, in Sweden as in many other countries, the question of whether the existence of ethnic enclaves are good or bad for immigrants’ earnings and employment opportunities has also been widely debated. This paper presents a study of the extent to which Middle Eastern ethnic enclaves and networks in Sweden enhance or hinder immigrants’ self‐employment. The results show that the presence of ethnic enclaves increases the propensity for self‐employment. Thus, immigrants in ethnic enclaves provide their co‐ethnics with goods and services that Swedish natives are not able to provide. The results also show that ethnic networks seem to be an obstacle to immigrant self‐employment. One explanation is that an increase in network size implies increased competition for customers among self‐employed immigrants. The question of whether ethnic enclaves are good or bad for the integration of immigrants into the labour market has been widely debated. The results of this paper provide us with information about the integration puzzle. Ethnic enclaves seem to enhance self‐employment propensities among Middle Eastern immigrants in Sweden.     

Are Ireland's Immigrants Integrating into Its Labor Market?

Ireland has experienced a remarkable change in its migratory patterns in recent years and has moved from experiencing large‐scale emigration to receiving significant inflows. In this paper, we use data from a nationally representative sample of immigrants and natives drawn in 2005 to assess the occupational attainment of immigrants in Ireland relative to natives. It is found that immigrants, on average, are less likely to be in high‐level occupations controlling for factors such as age and education. When looked at by year of arrival, it appears as if immigrants who arrived more recently have lower occupational attainment relative to earlier arrivals, thereby suggesting a process of integration. However, a closer analysis shows that the observation of better occupational attainment for earlier arrivals can be explained by a change in the national origin mix of Ireland's immigrants, with immigrants from the New Member States of the European Union having the lowest occupational attainment. Within national groups there is generally no clear evidence of improved occupational attainment over time.     

Migration across developed countries: German immigrants in Sweden and the US

The present study evaluates the interplay between the effects of host countries' characteristics and self-selection patterns of immigrants from a highly developed country on their economic assimilation in other developed countries. The focus is on immigrants originated from Germany during 1990–2000 who migrated to Sweden and the US. The results show that almost all German immigrants reached full earnings assimilation with natives of similar observed attributes, and that the assimilation of highly educated Germans was better than that of the less educated. It was also found that the skilled immigrants were compensated for their human capital acquired in Germany. Finally, the better assimilation of German immigrants, especially the highly educated, took place in the US. This finding was probably the result of an interaction between the Germans’ pattern of self-selection and the US context of reception.     

The Human Capital Characteristics and Household Living Standards of Returning International Migrants in Eastern and Southern Africa

Africa’s experience with return migration is not new. However, few empirical studies have examined the social and economic characteristics of returning migrants within the continent. In this study, the human capital endowments and household living standards of returning migrants in Uganda and South Africa are examined using recently available data. The study compares returnees in both countries with immigrants as well as the native‐born population with no international migration experience. It also investigates how factors such as previous country of residence, year of arrival, and other demographic factors predict levels of education and living standards among returning migrants. In Uganda, the results show that recently arrived returning migrants had better educational endowments than both immigrants and non‐migrants. Migrants who returned to Uganda following the fall of Idi Amin’s regime had the lowest educational levels and lowest living standards compared to other returnees. Furthermore, the results indicate that previous residence in countries in the West was associated with four additional years of schooling while returning migrants arriving from other African countries had the lowest levels of schooling among returning migrants. In South Africa, the study finds that returnees arriving almost immediately following the end of Apartheid had the highest levels of education compared to either immigrants or non‐migrants. Returnees on average also had the highest household living standards in South Africa. Among South African immigrants, the results indicate that those arriving towards the end of the century had lower educational endowments compared to immigrants who arrived in the country two to four years after the end of Apartheid.     

School Integration of Migrant Children from the United States in a Border Context

Since 2008, about half a million children have arrived in Mexico from the United States, most of whom are US-born. However, due to limited statistical data, there have been few quantitative studies on their school integration. Using data from the 2017 School Integration Survey, conducted in 86 lower secondary schools in the Tijuana metropolitan area, we analyse the relationship between students’ liking of school and their binational school trajectories in this border city with high return migration. The results, based on a multivariate statistical analysis, show that students who studied in that country exhibit a lower liking of school, which correlates with a higher number of years of schooling in the U.S. and less time spent in Mexico since last arrival. Various mediating mechanisms are identified, such as limited Spanish proficiency, teacher indifference and lack of cultural identification with Mexico. The implications for education policy are also discussed.     

Host National Identification of Immigrants in the Netherlands

This study examines immigrants' identification with the host country. We use survey data of more than 1,700 Turkish and Moroccan immigrants and more than 2,200 natives in the Netherlands. We answer four main questions in this study. First, do immigrants have lower national identification than natives? Second, does the level of national identification differ between immigrant groups? Third, do economic and social integration similarly affect national identification among immigrants and natives? And fourth, what are important additional determinants of national identification among immigrants? The results show that, compared to Dutch natives, Turkish but not Moroccan immigrants have lower national identification. Being employed and socially integrated is associated with higher national identification among immigrants as well as natives, but only among immigrants is higher occupational status associated with higher national identification. For immigrants, Dutch language proficiency, perceived discrimination, and contact with natives proved to be important conditions for national identification.     

DOES RAISING THE SCHOOL LEAVING AGE REDUCE TEACHER EFFORT? EVIDENCE FROM A POLICY EXPERIMENT

This paper examines the effect of an increase in the compulsory school leaving age on a measure of high school teachers' effort. Differences‐in‐Differences estimates using count data methods demonstrate that the policy led to teachers increasing their hours of sickness absence by roughly 15%. This result implies that raising the compulsory school leaving age reduces teaching inputs, and hence schooling quality. A policy implication is that these laws should be coupled with measures to compensate teachers for the additional disutility. This also suggests that instrumental variable estimates of returns to education that utilize these changes for identification may be downwardly biased. (JEL J22, J38)     

University Education as a Compensation Strategy Among Second‐Generation Immigrants

The aim of this study is to determine whether immigrants and their children use a compensation strategy that involves achieving higher than expected education, given their parents’ level of education and income. The study uses data for all individuals in Sweden who finished elementary school from 1990 to 1992. Parents’ level of education and income is in general positively associated with higher odds of having university education. However, some immigrant groups show the reverse pattern of the impact of parents’ income. The results support a compensation strategy developed in groups and families with low level of integration in the labor market.     

Settlement Intentions and Immigrant Integration: The Case of Recently Arrived EU‐Immigrants in the Netherlands

The aim of this study is to examine the effect of settlement intentions on the integration of recently arrived EU‐immigrants in the Netherlands. Hypotheses on differences in integration, both shortly after arrival and over time, are derived from the intergenerational immigrant integration model. Based on two waves of the New Immigrants to the Netherlands Survey, a longitudinal multilevel model was estimated. Most differences were found with regard to the level of integration shortly after arrival. Immigrants who intended to stay had more contact with natives, were more proficient in Dutch, and consumed more host country media than immigrants who intend to leave. On the other hand, they worked fewer hours per week than immigrants who intend to leave. Differences over time were only found with regard to Dutch language proficiency: immigrants who intend to stay increased their proficiency more strongly than immigrants who intend to leave.