Abstract
This paper analyzes intergenerational earnings mobility of immigrants and ethnic minorities in the UK. It has used a two sample instrumental variable technique, and utilized British Household Panel Survey for estimating mobility coefficient. The estimation provides the evidence of differences in generational mobility based on immigration status and ethnic origin. Earnings of the indigenous people tend to have a strong correlation with that of the father with a mobility coefficient of 0.34. However for immigrants as well as ethnic minorities, the father’s earnings has a lesser effect on children’s earnings with a much lower coefficient estimate.
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