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Economic opportunities across generations: Migrants and natives in Denmark

GSEM Professor Giacomo De Giorgi, along with Maurício Prado and Battista Severgnini from Copenhagen Business School, co-authored an article published in the Journal of Economic Behavior & Organization.ÌýThe study examines intergenerational economic mobility among migrants and natives in Denmark using extensive administrative data. While second and third generation migrants experience some income convergence, a gap persists, especially for those from low-income countries. Ethnic capital influences these disparities, benefiting individuals from high-income backgrounds while disadvantaging others. Despite Denmark’s strong welfare system, mobility for migrants remains lower than for natives, highlighting structural barriers beyond education and redistribution.

ABSTRACT

This paper examines income trajectories among migrants from various countries across three generations in Denmark, comparing them to native Danes. Exploiting comprehensive administrative datasets, we investigate economic mobility and evaluate whether Denmark provides economic opportunities for non-natives and their descendants. Our findings indicate that second and third generation immigrants gradually assimilate with Danes but maintain a significant and persistent income gap, contrasting with findings in the United States. We find suggestive evidence that ethnic capital plays a persistent and significant role in explaining these disparities.

The study is available here:Ìý

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