The educational attainment of second-generation immigrants in The Netherland

Since the mid-1960s the Netherlands has had a positive net immigration, mainly because of man power recruitment from Turkey and Morocco and immigration from the former Dutch colony of Surinam. Immigrants havea weak labor market position, which is related to their educational leveland language skills. Children and grandchildren of immigrants are expected to have a better chance of integration into Dutch society. In this paper we investigate whether this is true with respect to the educational attainment of second-generation immigrants from Turkey, Morocco, Surinam and the Dutch Antilles.The authors thank an anonymous referee and both editors for helpful comments. Responsible editors: David Card and Christoph M. Schmidt.     

The school-to-work transition of 2<Superscript>nd</Superscript> generation immigrants in Denmark

2^nd generation immigrants from less developed countries have less education and a lower employment frequency compared to the native Danish youth. We analyse the school-to-work transition of these groups using panel data for the years 1985–1997. The educational gap between 2^nd generation immigrants and the Danish youth is to some extent explained by age structure, while age does not explain the native-immigrant gap concerning the duration of waiting time until first job and the duration of first employment spell. Instead parental capital and neighbourhood effects seem to play a major role. We find large gender differences among 2^nd generation immigrants in the school-to-work transition.All Correspondence to Nina Smith. Thanks to Thomas Haugaard Jensen, Anne-Sofie Reng Rasmussen and Mette Skak-Nielsen who have done part of the computational work. We also want to thank two anynomous referees and participants in the ESF-conference on Migration and Development in Naples 2000 and the ESPE conference in Athens 2001 for many valuable comments. The project has been financed by the Danish Social Science Research Council (FREJA), the Danish Ministry of Labour and TSER. Furthermore, Helena Skyt Nielsen has been supported financially by the Danish Social Science Research Council (SSF), while this work was undertaken. Responsible editors: David Card and Christopher M. Schmidt.     

Mothers in an insider-outsider economy: the puzzle of Spain

There is growing evidence that social policies towards mothers have important effects on their labour market behaviour. This article argues that these effects are less important in a Male Breadwinner Regime if there is employment insecurity in the household or if women intend to participate in the long-run. I consider the case of Spain, where the workforce has become polarized between insiders and outsiders and where social policies closely resemble the Male Breadwinner Regime. The results show that Spanish mothers fall into two groups: those who do not withdraw from the labor force after childbirth and those who withdraw and do not re-enter after their children arrive at school age. Entry or re-entry appears related to the husband's employment uncertainty. Married women in an insider household are less likely to be mobile than women in an outsider household.This research was initiated with the financial support from the Bank of Spain (Fondo para Estudios sobre el Mercado de Trabajo) and the CIRIT (Generalitat de Catalunya). An earlier version has been published in Spanish in Adam, 1995 a. I benefited from presentations in the session on Women's Labour Force Transitions in the ESPE ninth annual meeting at Lisbon, in the IESA (CSIC, Madrid) seminar, in the session on European Labour Markets in the IEA meeting at Tunis, and in the IGIER seminar. I thank Namkee Ahn, Siv Gustafsson, John Ermisch, Andrea Ichino, Sergi Jiménez, Dennis Snower, Robert Waldmann and an anonymous referee for comments. My very especial thanks go to my thesis supervisor, John Micklewright, to Gosta Esping-Andersen, John Myles and David Soskice. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

Unemployment and earnings for second generation immigrants in Sweden. Ethnic background and parent composition

This study sheds light on the labour market outcomes of children born to immigrants in the destination country, i.e. second generation immigrants. The study has the advantage of being able to (i) identify several different ethnic backgrounds and (ii) identify the parent composition, i.e. whether one or both parents of the individual are foreign born. The labour market outcomes of second generation immigrants mirror those of first generation immigrants in that we find heterogeneity in labour market outcomes to be associated with ethnic background. Moreover, these outcomes, especially for Southern and non-European backgrounds, are much worse than those for native-born with a Swedish background. Finally, the outcome is more favourable if one parent is born in Sweden compared to having both parents foreign born, especially if the mother is native born.All Correspondence to Dan-Olof Rooth. We are grateful for several helpful comments and suggestions from two anonymous referees. A research grant from the Swedish Council for Working Life and Social Research is gratefully acknowledged. Responsible editor: Christoph M. Schmidt.     

Did the association between fertility and female employment within OECD countries really change its sign?

Recent literature finds that in OECD countries the cross-country correlation between the total fertility rate and the female labor force participation rate, which until the beginning of the 1980s had a negative value, has since acquired a positive value. This result is (explicitly or implicitly) often interpreted as evidence for a changing sign in the time-series association between fertility and female employment within OECD countries. This paper shows that the time-series association between fertility and female employment does not demonstrate a change in sign. Instead, the reversal in the sign of the cross-country correlation is most likely due to a combination of two elements: First, the presence of unmeasured country-specific factors and, second, country-heterogeneity in the magnitude of the negative time-series association between fertility and female employment. However, the paper does find evidence for a reduction in the negative time-series association between fertility and female employment after about 1985.I benefited from stimulating discussions with Arnstein Aassve, Pau Baizan, Francesco Billari, Henriette Engelhardt, Hans-Peter Kohler and Alexia Prskawetz and a seminar in Rostock. Further, I am grateful to two anonymous referees for very useful suggestions that improved essentially the content of the paper. In addition, I thank Susan Masur, Susann Backer, and Elizabeth Zach for language editing. The views expressed in this paper are the authors own views and do not necessarily represent those of the Max Planck Institute for Demographic Research. Responsible editor: Junsen Zhang.     

Assimilation of immigrants: Implications for human capital accumulation of the second generation

Immigrants assimilate in various dimensions at different rates. Moreover, in each of these dimensions they assimilate at rates that may differ from those of their children. The purpose of this paper is to examine how the pace of assimilation of immigrants in various dimensions affects the rate of human capital accumulation of immigrant children. It is argued that rapid assimilation in certain dimensions serves to increase the rate of human capital accumulation of the second generation, while in other dimensions it may have the opposite effect.I thank Christoph Schmidt, Peter Schaeffer, and two anonymous referees for helpful comments. Responsible editor: Christoph M. Schmidt.     

The educational attainment of second-generation mainland Chinese immigrants in Taiwan

The social status and well-being of political immigrants’ children are seldom touched upon in literature. This paper focuses on the impact of refugee experience on the relative educational attainment of second-generation immigrants in Taiwan. In contrast with the results in van Ours and Veenman (J Popul Econ 16(4):739–753, 2003) and Riphahn (J Popul Econ 16(4):711–737, 2003) who showed that second-generation immigrants lag behind their native counterparts, this paper’s principle finding is that the father’s immigration status can help his children achieve a higher educational qualification than native Taiwanese after controlling the relevant determinants of educational attainment, including parental background and the neighborhood where the interviewee grows up. In addition, women born in the earlier cohort benefit more by their fathers’ immigration status than their male counterparts do. However, Taiwanese schooling advances across generations are impressive, whereby the gap in schooling attainment between second-generation immigrants and native Taiwanese is found to decline over time.

Settlement policies and the economic success of immigrants

Many countries use settlement policies to direct the inflow of immigrants away from immigrant dense areas. We evaluate a reform of Swedish immigration policy that featured the dispersion of refugee immigrants, but also a change in the approach to labor market integration. We focus on how immigrants fared because of the policy. The evaluation indicates that immigrants experienced substantial long run losses. The bulk of the effect stems from a common component that affected immigrants regardless of location. We interpret the common component as being related to a shift in policy focus, from labor market assimilation to income support.All correspondence to Per-Anders Edin. We thank two anonymous referees, Magnus Löfström, seminar participants at the Institute for Labour Market Policy Evaluation (IFAU), Uppsala University, Stockholm University, the Swedish Institute for Social Research (SOFI), the Research Institute of Industrial Economics (IUI), and the CEPR conference on Marginal Labour Markets in Metropolitan Areas for valuable comments and Lisa Fredriksson for expert data assistance. We are also grateful to Sven Hjelmskog, Roland Jansson, Stig Kattilakoski, Christina Lindblom, Anders Nilsson, Kristina Sterne, and Lena Axelsson of the Immigration Board, and Anna Gralberg of the Ministry of Culture, who generously found time to answer our questions. This research has been partly financed through a grant from the Swedish Council for Work Life Research (RALF). Responsible editor: Christoph M. Schmidt.     

Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note

Razin and Sadka (1999) show that unskilled immigration is beneficial to all income and all age groups in society, even if immigrants are net beneficiaries of the welfare system. Among other things, this result rests on the assumptions that immigrants have the same reproduction rate as the native population and that the immigrants offspring has the same distribution of skills as the natives offspring. By relaxing these assumptions, we show that the Razin and Sadka result is no longer unambiguous.Helpful comments and suggestions from two anonymous referees are gratefully acknowledged. Responsible editor: Alessandro Cigno.     

Public policy and the labor market adjustment of new immigrants to Australia

Two separate cohorts of immigrants to Australia are compared in order to assess the potential role of immigrant selection criteria, labor market conditions, and income-support policy in facilitating the labor market adjustment of new arrivals. Although these two cohorts entered Australia only five years apart, their initial labor market outcomes varied dramatically. The results indicate that changes in immigration policy may have led to increased human capital endowments that in turn resulted in higher participation rates and reduced unemployment. At the same time, improvement in Australian labor market conditions and changes in income-support policy over the 1990s – which most likely altered the returns to human capital – were probably instrumental in reinforcing the effects of tighter immigrant selection criteria. As much as half of the fall in unemployment rates among women and one third the decline among men appears to have occurred as the result of changes in the returns to demographic and human capital characteristics. Responsible editor:Christoph M. Schmidt     

The effect of immigration on wages in three european countries

We analyse the impact of immigrants on natives wages from reduced form wage equations for The Netherlands, United Kingdom and Norway. We find very small effects on natives wages and no dominant robust patterns of substitution and complementarity. Effects on earlier immigrants own wages are larger but less reliable. Further work should focus on these own effectsData on the Netherlands have been made available by CEREM, Statistics Netherlands(LSO 1997) and SEO (GPD). The British QLFS have been made available by the Office for National Statistics through the Data Archive, University of Essex. Norwegian KIRUT data have been made available by NSD, Bergen. We are grateful to these organisations. None of these organisations bear any responsibility for the analyses or interpretations of data sets used in this paper.Two anonymous referees and the editor-in-chief, Klaus Zimmermann, provided very valuable inputs for a substantial revision of an earlier draft. Responsible editor: Klaus F. Zimmermann.     

The effect of maternal employment on teenage childbearing

This paper estimates the effect of a mothers employment on her teenage daughters likelihood of birth. Using data from the United States, the National Education Longitudinal Survey of 1988, the author finds that teenagers with working mothers who attend relatively wealthy schools are more likely (77%) to have a birth compared to teens who attend similar schools but have non-working mothers. In contrast, teenagers with working mothers who attend relatively poor schools are less likely (18%) to have a birth compared to teens who attend similar schools but have non-working mothers.I am indebted to Marcia Carlson, Thomas DeLeire, Angela Fertig, Brian Jacob, Darren Lubotsky, Scott Lynch, Susan Mayer, Sara McLanahan, Robert Michael, German Rodriguez, seminar participants at Princeton University and The University of Chicago, and two anonymous referees for insightful suggestions made on earlier versions of this paper. I also gratefully acknowledge financial support from a Northwestern University/University of Chicago Joint Center for Poverty Research Graduate Fellowship, a Robert R. McCormick Tribune Foundation Graduate Fellowship, the Bendheim-Thoman Center for Research on Child Wellbeing at Princeton University, and the Office of Population Research at Princeton University, which is supported by center grant 5 P30 HD32030 from the NICHD. Responsible editor: Junsen Zhang.     

Determinants of family migration: short moves vs. long moves

This paper examines factors underlying family migration. Based on a sample of stable Finnish families, both short- and long-distance migration is investigated. The empirical analysis carried out using multinomial logit modelling shows a strong negative association between the family life-cycle and migration. The findings indicate that migration takes place mainly due to the demands of the husbands career, resulting in the wives being tied migrants. Two-earner families are less migratory, and in that sense the husbands are tied stayers. Distance matters; several differences are noticed between short- and long-distance migrants.Financial support from the Yrjö Jahnsson Foundation (project no. 4271) is gratefully acknowledged. I would like to thank two anonymous referees for their helpful comments on this paper. I also wish to thank Kari Hälänen, Sari Pekkala and Hannu Tervo for their comments on an earlier version of this paper. Responsible editor: John F. Ermisch.     

From stagnation to growth: Revisiting three historical regimes

This paper explores the role of mortality in the long transition from Malthusian stagnation to sustained economic growth. An endogenous child mortality rate that varies inversely with parents standard of living is added to the framework in Galor and Weil (AER 2000). In our version of the model, the transition from stagnation to growth, triggered by an exogenous shock to technology, comprises a mortality revolution succeeded by a demographic transition.This paper has benefitted from discussions with and suggestions made by KarlGunnar Persson, Christian Schultz, and, particularly, Christian Groth at the University of Copenhagen. I gratefully acknowledge the insightful criticisms of two anonymous referees, and I thank Paula Madsen for English proof-reading. Responsible editor: Alessandro Cigno.     

Labour supply effects of a cash-for-care subsidy

From 1999, all parents in Norway with children aged one to three, who did not attend publicly subsidised daycare, became eligible for a cash-for-care (CFC) subsidy. One effect of the CFC-subsidy was to increase in the relative price of external child care. This article analyses whether the CFC-subsidy has led to a reduction in the labour supply of mothers. A framework for evaluating policy reforms when reforms are equally and nation-wide accessible is put forward. The results show that the CFC-subsidy has reduced womens labour supply. The results are sustained after controlling for contemporaneous macroeconomic shocks, using a triple difference approach.The author thanks Hege Torp, Erling Barth and Harald Dale-Olsen at The Institute for Social Research, as well as participants at the European Society for Population Economics (ESPE) conference in Bilbao in June 2002, participants at the Lunch-seminar at Statistics Norway, and two anonymous referees for valuable comments. The work is financed by the Norwegian Research Council, grant #137230/530. The financial support is gratefully acknowledged.Responsible editor: Deborah Cobb-Clark.     

Children and return migration

We explore reasons for return migrations which are motivated by immigrants concerns about their children. We develop a simple model, where parents have paternalistic preferences. We show that parental concerns about the child may lead to an increase, or to a decrease in the tendency to return to the home country. Our model suggests that return plans of the parent may respond differently to the presence of daughters than to the presence of sons. The empirical test of our models relies on the exogeneity of childrens gender. We use a survey panel data set, containing information on both return realisations over 14 years, and intended return plans. Our results lend support to the hypothesis that children influence return plans of their parents.I am grateful to Jerome Adda, Jaap Abring, David Card, Slobodan Djajic, and Ian Preston for comments on earlier versions of this paper. Responsible editor: Christoph M. Schmidt.     

Immigration policy and immigrant quality: empirical evidence from Canada

This paper examines the earnings of foreign-born and native-born men in an attempt to evaluate whether the decline in the quality of Canadian immigrants is related to changes in the country-of-origin mix and the class (type) mix of immigrants. Based on a human capital interpretation, higher quality immigrants are defined as immigrants who have smaller on-entry earnings differentials and have earnings that grow at a faster rate (relative to native-born Canadians). The analysis consists of two parts. The first part is based on individual data on earnings and socio-economic characteristics collected in the 1971 and 1986 Canadian Censuses. Earnings equations are estimated for 16 country-of-origin immigrant groups. These regressions are then used to construct a cohort-specific measure of immigrant quality based on the earnings differential between foreign-born and native-born Canadians. In the second part of the analysis, additional regression equations are estimated, pertaining to the period 1968 to 1985, that relate these Census-based measures of immigrant quality to the country-of-origin and class mix of immigrants. In this analysis, unpublished data, supplied by theDepartment of Employment and Immigration, describing the distribution of immigrants across the three main immigrant classes is used. Overall, the analysis confirms that there has been a sharp secular decline in the quality of Canadian immigrants and suggests that it is related to changes in both the country-of-origin and class mix of immigrants.Earlier versions of this paper were presented at the meetings of the Canadian Economics Association and the European Society for Population Economics. The comments of Martin Browning, John Ermisch and two anonymous referees are gratefully acknowledged. Of course, all remaining errors and shortcomings are the sole responsibility of the authors.     

A critique of the Urban Institute's claims of cost free immigration: Early findings confirmed

This text addresses the critiques from the Urban Institute and other immigrant advocacy groups concerning the findings of an earlier study, The Cost of Immigration released in the summer of 1993. That study showed that the public costs associated withimmigrants settling here since 1970 amounted, in 1992, to $42.5 billion more in services and assistance than the $20.2 billion which immigrants paid in taxes (Huddle, 1993). The updated assessment takes into account previously unavailable figures and revises some methods and assumptions used in the earlier work. The updated bottom line is fully consistent with initial findings on immigrant costs for 1992.     

The Place of Place: Location and Immigrant Economic Well-being in Canada

In recent years, successive cohorts of immigrants to Canada have experienced a striking level of deterioration in their economic well-being. At the same time, more immigrants than ever before are choosing to live in Montréal, Toronto, or Vancouver, Canada’s three-first-tier or ‘gateway cities’. This paper uses instrumental variable regression techniques to determine the extent to which gateway city clustering is related to immigrant economic well-being. It identifies whether employment status, earnings, and employment suitability would significantly improve if more immigrants chose to live outside of Canada’s three gateway cities. The results suggest that, for the most part, although immigrants do worse than the native-born in gateway cities, they do experience marginally higher earnings than their non-gateway counterparts. Income and unemployment rates are higher for immigrants in gateway cities than they are for the native-born, but the gateway/non-gateway disparity is minimal. Levels of employment mismatch are substantially higher in gateway cities, compared to both the gateway city native-born population, and non-gateway immigrants. An analysis of the data shows that only marginal improvements to economic well-being would result from an increase in non-gateway immigration, and that there are other factors, like race or skin colour, that seem to be more closely linked to labour market success.

Premium differentiation in the Unemployment Insurance system and the demand for labor

We simulate the effect of the introduction of premium differentiation (experience rating) in the Dutch Unemployment Insurance system on the demand for labor for a variety of sectors in the Dutch economy. For the simulations we use the Bentolila and Bertola (1990) framework as a point of departure. In the simulations, the introduction of experience rating is modeled as expenditure neutral: in the absence of premium differentiation the cost of financing UI is modeled as a wage tax (independent of the number of workers fired by the firm), whereas in the presence of experience rating this cost is attributed to firing cost (affected by the firing action). Thus, the introduction of experience rating results in a shift from wage cost to firing cost. Following the political debate on the issue in the Netherlands, we assume that the introduction of experience rating does neither lead to a change in tax rates paid by workers nor to a change in eligibility rules or replacement rates of benefit claimants. Specific attention is paid to the distinction between young and old workers . In the model, labor adjustment costs (hiring and firing costs) are linear. The model allows for uncertainty in the business cycle.All correspondence to Hans Bloemen. Responsible editor: Alessandro Cigno