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Immigrant's Human Capital Investments and Local Policies

Moreno Manrique, Victoria C. (2008)
Department of Economics
Abstract
Earnings assimilation is the process of convergence between the wages of e.g. women and men or a native and an immigrant. Frequently people refer to earnings assimilation as a way to look into the level of integration of an individual. But it is important to note that the fact that a person earns as much as the one that surround them or even above the average does not mean that he or she is integrated. It does not necessary connote that he/she feels welcome, part and willing to be involve at the society. Therefore when measuring integration other social and cultural factors must be taken into account. But it is in the economic integration of the immigrants (which should not only include wages but also other indicators as differences on... (More)
Earnings assimilation is the process of convergence between the wages of e.g. women and men or a native and an immigrant. Frequently people refer to earnings assimilation as a way to look into the level of integration of an individual. But it is important to note that the fact that a person earns as much as the one that surround them or even above the average does not mean that he or she is integrated. It does not necessary connote that he/she feels welcome, part and willing to be involve at the society. Therefore when measuring integration other social and cultural factors must be taken into account. But it is in the economic integration of the immigrants (which should not only include wages but also other indicators as differences on unemployment rates) where the human capital plays an important role. For this reason most of the policies that focus on integration have an impact and intended to impact human capital investment.
The purpose of this paper was to relate the local government activity with the decision of human capital investment and integration among immigrants. We chose to focus on the municipality level since the responsibility of immigrant’s assimilation and other public services (as for instance education and child care) are under the scope of authority of the municipalities whereas counties are mainly in charge of healthcare. We chose to focus on Malmö Kommun. The reason is that Malmö has between 7%-6% more percentage of immigrant population than Göteborg (20%) or Stockholm (21%). Also while Stockholm and Göteborg have increase the proportion of immigrant population in 6 points, Malmö has pass from 16% to 27%.
Under the theoretical framework we do expect that the policies developed by Malmö Kommun will affect, and have affected, the immigrant’s investment in human capital. But the data available is not enough to support those expectations. It has not been possible to associate the local government activity with the economic integration of the immigrants by only using descriptive statistics. Individual data across time and econometrics tools are needed in order to separate the influence of the municipality from other variables that could also affect the country specific human capital investments. (Less)
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@misc{1336045,
  abstract     = {Earnings assimilation is the process of convergence between the wages of e.g. women and men or a native and an immigrant. Frequently people refer to earnings assimilation as a way to look into the level of integration of an individual. But it is important to note that the fact that a person earns as much as the one that surround them or even above the average does not mean that he or she is integrated. It does not necessary connote that he/she feels welcome, part and willing to be involve at the society. Therefore when measuring integration other social and cultural factors must be taken into account. But it is in the economic integration of the immigrants (which should not only include wages but also other indicators as differences on unemployment rates) where the human capital plays an important role. For this reason most of the policies that focus on integration have an impact and intended to impact human capital investment.
The purpose of this paper was to relate the local government activity with the decision of human capital investment and integration among immigrants. We chose to focus on the municipality level since the responsibility of immigrant’s assimilation and other public services (as for instance education and child care) are under the scope of authority of the municipalities whereas counties are mainly in charge of healthcare. We chose to focus on Malmö Kommun. The reason is that Malmö has between 7%-6% more percentage of immigrant population than Göteborg (20%) or Stockholm (21%). Also while Stockholm and Göteborg have increase the proportion of immigrant population in 6 points, Malmö has pass from 16% to 27%.
Under the theoretical framework we do expect that the policies developed by Malmö Kommun will affect, and have affected, the immigrant’s investment in human capital. But the data available is not enough to support those expectations. It has not been possible to associate the local government activity with the economic integration of the immigrants by only using descriptive statistics. Individual data across time and econometrics tools are needed in order to separate the influence of the municipality from other variables that could also affect the country specific human capital investments.},
  author       = {Moreno Manrique, Victoria C.},
  keyword      = {segregation,Human capital,Malmö,Immigrants,local policies,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Immigrant's Human Capital Investments and Local Policies},
  year         = {2008},
}