Scandinavian Working Papers in Economics

CAFO Working Papers,
Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics

No 2007:7: SUR estimation of earnings differentials between three generations of immigrants and natives

Jan Ekberg (), Mats Hammarstedt () and Ghazi Shukur ()
Additional contact information
Jan Ekberg: Centre for Labour Market Policy Research (CAFO), Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University , SE 351 95 Växjö, Sweden
Mats Hammarstedt: Centre for Labour Market Policy Research (CAFO), Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University , SE 351 95 Växjö, Sweden
Ghazi Shukur: Centre for Labour Market Policy Research (CAFO), Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University , SE 351 95 Växjö, Sweden

Abstract: This paper presents a SUR estimation of earnings differentials between three generations of male immigrants and male natives in Sweden. The results show that male first-generation immigrants were at an earnings advantage compared to male natives. Among male second-generation immigrants the earnings differentials compared to natives were very small, while third-generation immigrants were at an earnings disadvantage compared to natives. Thus, the results indicate that ethnic differences in earnings are likely to occur even after several generations spent in a country and that the problem of immigrant assimilation that exists in many European countries may last for several generations.

Keywords: Immigrants; Earnings; SUR estimation

JEL-codes: J15; J24; J61; J62

16 pages, November 1, 2007

Note: All correspondence to: mats.hammarstedt@vxu.se

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