WHAT DRIVES SECOND GENERATION SUCCESS? THE ROLES OF EDUCATION, CULTURE, AND CONTEXT

Abstract

I explore differences in intergenerational income mobility among second generation Australians—why do some communities do better or worse than would be expected from first generation incomes alone? I present a new decomposition of this exceptional income mobility, finding exceptional educational mobility drives many of these differences. Drawing on rich survey and test score data, I provide evidence that educational mobility partly reflects a role for culture—but also the wider context of migration. In particular, migrants facing higher first generation income penalties tend to aspire to and acquire more education, and see it as more important to success. (JEL J62, F22, I2).