Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267592 
Year of Publication: 
2021
Citation: 
[Journal:] Baltic Journal of Economics [ISSN:] 2334-4385 [Volume:] 21 [Issue:] 2 [Publisher:] Taylor & Francis [Place:] London [Year:] 2021 [Pages:] 157-182
Publisher: 
Taylor & Francis, London
Abstract: 
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.
Subjects: 
decomposition
immigrants
income gap
Intergenerational mobility
JEL: 
J15
J31
J61
J62
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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