Explaining the generational gap of migrant households

Abstract Quantitative work has demonstrated that among immigrant groups in the United States there are quite varied differences in inter-generational outcomes. This paper presents a qualitative examination as to what produces these differences. The underlying theory is that educational outcome differences are due to exogenous shocks that alter household educational investment choices. This paper finds that after controlling for shock, community characteristics, and household resources, being of Mexican or Asian ancestry continues to have a significant impact on educational outcomes. All other ancestries captured in this dataset are shown to be insignificant. The negative effect from being of Mexican ancestry appears only if one is raised in a household with low social economic resources. While, the positive effect of being of Asian Ancestry is only found for households with higher social economic resources.