Research Programs

Immigration, Ethnicity, and Social Structure

Immigration, Ethnicity, and Social Structure

This program is led by Senior Scholar Joel Perlmann, who guides a research initiative, “Ethnicity and Economy in America—Past and Present,” that focuses on the processes by which immigrants and their descendants are assimilated into US economic life. The Levy Institute believes that this work will shed light on current policy issues related to immigration, such as international competitiveness, the labor market, income distribution, and poverty.

The program comprises three research projects. The first, “The Jews circa 1900: Social Structure in Europe and America,” focuses on social characteristics that help to explain the rapid socioeconomic rise of eastern European Jewish immigrants who entered the American economy at the turn of the 20th century. Census data that were previously unavailable or not machine readable are used to examine social and economic characteristics of eastern European Jews who emigrated to the United States, as well as those who remained in Europe.

The second project, “Assimilation and the Third Generation,” explores the assimilation of immigrants into the socioeconomic mainstream of the United States, and the social and economic experiences of their American-born children. Special attention is paid to a few large groups whose absorption seemed especially slow and painful during the first and second generations: Irish immigrants who arrived in the mid 19th century, Italians and Poles who immigrated between 1880 and 1920, Mexicans who arrived throughout much of the 20th century, and southern-born blacks who migrated north. Census data are used in new ways in order to identify and trace second- and third-generation Americans.

The third project, “The New Immigration’s Second Generation,” conducted by Perlmann and Research Associate Roger Waldinger, reviews literature that deals with the economic progress and difficulties faced by children of today’s immigrants (i.e., at the turn of the 21st century). Their experiences are compared with those faced by children of immigrants at the turn of the 20th century.

Research Group on Israeli Social Structure and Inequality

A second long-term research initiative, begun in the fall of 2008, is based around the Research Group on Israeli Social Structure and Inequality, which includes Perlmann and Research Associate Yuval Elmelech, as well as two scholars each from Columbia University and The Hebrew University of Jerusalem: Yinon Cohen (Yosef H. Yerushalmi Professor of Israel and Jewish Studies) and Seymour Spilerman (Julian C. Levi Professor of Sociology) from the former, and Sergio DellaPergola (Shlomo Argov Chair in Israel-Diaspora Relations, Institute of Contemporary Jewry) and Barbara S. Okun (Associate Professor of Population Studies) from the latter.

The group expects to focus on three domains of inequality. First, ethnic origin and immigration status play key roles in shaping the Israeli stratification system. Crucial is the division between Jews and Arabs, and, among Jews, the division between Mizrachim (Jews from Muslim, mostly Arab, lands) and Ashkenazim (Jews of European descent). First- and second-generation Mizrachim lag behind Ashkenazim on the various measures of economic well-being, such as education and labor market attainment. The issue of second-generation catch-up or decline, reverberating through discussions of contemporary American and European immigration, is common in social science literature on Israel as well. A closer look at the evidence, especially by individual country of origin and over time, and a perspective of international comparisons characterize our approach.

Second, we will focus on the changing patterns of economic inequality. Israel today has among the highest rates of poverty in the developed world, and the gaps between the wealthy and the poor have increased substantially over the past three decades. We will be exploring the shifting income and wealth distributions in Israel during the recent years of increasing privatization policies and globalization trends.

Third, we hope later to study the results of the massive restructuring of Israeli higher education over the past decade and a half: the creation of a large number of smaller “colleges” of varying quality, where before there had been only a half dozen universities, all of them essentially research universities. The 2008 Israel Integrated Census of Population and Housing should provide data on the connection between the educational expansion and returns to schooling.

The 1967 Census of the West Bank and Gaza Strip: A Digitized Version

In the summer of 1967, just after the Six-Day War brought the West Bank and Gaza Strip under Israel’s control, the Israeli Central Bureau of Statistics conducted a census of the occupied territories. The resulting seven volumes of reports provide the earliest detailed description of this population, including crucial data about respondents’ 1948 refugee status.

The Levy Economics Institute is making the contents of these volumes available in machine-readable form for the first time, in the hope that the data can be exploited by researchers interested in a fuller understanding of the social history of the Palestinian people in the occupied territories. For an overview of our project and to access the hundreds of tables contained in the 1967 Census database, click here.

Program Publications

  • Working Paper No. 815 | September 2014

    This paper contributes to the literature on inequality and welfare policy by studying public support for redistributive policies in Israel, a society with an extreme level of socioeconomic inequality. Drawing on the relevant literature and taking into consideration the distinct demographic makeup of contemporary Israeli society, the study aims to describe public support for opportunity-enhancing and outcome-based redistributive policies and to explore the extent to which individual economic and demographic characteristics are associated with policy preferences. Analysis of data from a unique topical module of the 2008 Israel Social Survey reveals that support for opportunity-based programs is strong overall, but that the Israeli public is deeply divided along ethnic lines, religious affiliation, and immigration status. While results from multinomial regression analyses provide support for the self-interest theory, the findings also underscore the significance of various demographic and social indicators as determinants of policy preferences. These findings are discussed in light of the current debates on the sources of, and possible remedies for, the growing social and economic polarization within Israeli society.

  • Working Paper No. 756 | February 2013
    Does the Gender of the Migrant Matter?

    Utilizing a nationally representative sample of households from Sri Lanka, this study examines gender differences in the long-term impact of temporary labor migration. We use a propensity score matching (PSM) framework to compare households with return migrants, households with current migrants, and equivalent nonmigrant households in terms of a variety of outcomes. Our results show that households that send women abroad are relatively poor and utilize migration to catch up with the average household, whereas sending a man abroad allows an already advantaged household to further strengthen their economic position. We also find that remittances from females emphasize investment in home improvements and acquisition of farm land and nonfarm assets, whereas remittances of men are channeled more toward housing assets and business ventures.

  • Working Paper No. 689 | October 2011

    Immigration is having an increasingly important effect on the social insurance system in the United States. On the one hand, eligible legal immigrants have the right to eventually receive pension benefits but also rely on other aspects of the social insurance system such as health care, disability, unemployment insurance, and welfare programs, while most of their savings have direct positive effects on the domestic economy. On the other hand, most undocumented immigrants contribute to the system through taxed wages but are not eligible for these programs unless they attain legal status, and a large proportion of their savings translates into remittances that have no direct effects on the domestic economy. Moreover, a significant percentage of immigrants migrate back to their countries of origin after a relatively short period of time, and their savings while in the United States are predominantly in the form of remittances. Therefore, any analysis that tries to understand the impact of immigrant workers on the overall system has to take into account the decisions and events these individuals face throughout their lives, as well as the use of the government programs they are entitled to. We propose a life-cycle Overlapping Generations (OLG) model in a general equilibrium framework of legal and undocumented immigrants’ decisions regarding consumption, savings, labor supply, and program participation to analyze their role in the financial sustainability of the system. Our analysis of the effects of potential policy changes, such as giving some undocumented immigrants legal status, shows increases in capital stock, output, consumption, labor productivity, and overall welfare. The effects are relatively small in percentage terms but considerable given the size of our economy.

  • Working Paper No. 648 | January 2011

    This paper discusses support for, and opposition to, racial classification of European immigrants among high-level researchers at both the United States Immigration Commission of 1907–11 (the Dillingham Commission) and the Census Bureau during those same years. A critical distinction must be made between the Commission members—political appointees who mostly supported some form of restriction at the time of their appointment—and the top research staff, whose views were remarkably wide ranging. Moreover, even staff members committed to a racialized outlook—such as Daniel Folkmar, author of the Commission’s infamous Dictionary of Races and Peoples—deserve a closer look than historians have given them; for example, Folkmar and his superior on the staff had requested commentary from Franz Boas, who was then emerging as the most prestigious academic critic of racial theories (theories that assume group differences in behavior arise from biological endowments). Another feature of the narrative concerns the surprising number of staff who transferred from the Commission to the Census Bureau to work on the 1910 Census. Debates continued at the Bureau as well, this time over how to present the results of the new “mother tongue” question, which had been introduced to the Census questionnaire in response to pressure for a European “race” question. Indeed, Folkmar was also the chief author of the Census Bureau report on the mother-tongue data.

  • Working Paper No. 646 | December 2010
    Blending Across Four Generations of German-Americans

    New data from the IPUMS (Integrated Public Use Microdata Series) project permit an exploration of the demographic basis for ethnic survival across successive generations. I first explore the degree of ethnic blending among the grandchildren of early- to mid-19th-century German immigrants; second, these descendants’ own marital choices; and third, the likely composition of the fourth generation to which they would give birth. Fundamental questions include: How high is the rate of single versus mixed origins after so many generations in America? How large an absolute number of single-origin individuals remain (given the combined impact of out-marriage, on the one hand, and cumulative fertility, on the other)? How much less likely are single-origin individuals of the third generation to in-marry relative to those in the second generation? And how do all these patterns differ across 31,000 local geographic areas? I exploit the full-count 1880 Census dataset and the Linked Representative Sample, which captures males in 1880 as well as in one of the 1900–30 enumerations. Limiting attention to those who were adolescents in 1880, we have three generations’ worth of ethnic information on each sample member traced across time (birthplace as well as parents’ and grandparents’ birthplaces, from their parents’ responses) and ethnic information covering two generations for the women they eventually married.

  • Working Paper No. 633 | November 2010
    New Evidence in the Debate about the Creation of Second Generation Educational Outcomes in Israel

    There is much interest in explaining the persistent ethnic gaps in education among Israeli Jews; specifically, the much lower attainments of those from Asian and African countries compared to the rest—Mizrahim vs. Ashkenazim, respectively. Some explanations (especially early ones) have stressed premigration immigrant characteristics, particularly the relatively lower level of educational attainment among Mizrahim. More recent interpretations have tended to focus on discrimination of various sorts that took place after the immigrants arrived in Israel. Crucial evidence for the discriminatory effect was introduced by Yaakov Nahon (1987), who demonstrated a shift toward a Mizrahi-Ashkenazi dichotomy in educational attainment between birth cohorts of adult immigrants and birth cohorts of adults born in Israel. From this evidence, a wide range of scholars concluded that the premigration educational characteristics of immigrants could not explain Israeli educational patterns, and that, consequently, the explanation based on discrimination was thereby greatly strengthened.

    In this paper, we use the 1961 Israel census public-use dataset to refine Nahon’s analysis. Instead of using age cohorts as proxies for “fathers” and “children,” we focus on actual fathers and their children. Our results vary substantially from Nahon’s. In fact, we find that the educational attainment of immigrant fathers clusters quite closely around the Ashkenazi-Mizrahi dichotomy, and conclude that it is no longer reasonable to rule out the premigration hypothesis. This outcome leaves researchers with a more challenging explanatory task than before, because they are now faced with the notoriously difficult situation of having to determine the relative influence of premigration characteristics, on the one hand, and of discriminatory processes, on the other.

  • Working Paper No. 599 | May 2010
    A Spatial Econometric Analysis of Microneighborhoods in Kingston, New York
    This paper use spatial econometric models to test for racial preferences in a small urban housing market. Identifying racial preferences is difficult when unobserved neighborhood amenities vary systematically with racial composition. We adopt three strategies to redress this problem: (1) we focus on housing price differences across microneighborhoods in the small and relatively homogenous city of Kingston, New York; (2) we introduce GIS-based spatial amenity variables as controls in the hedonic regressions; and (3) we use spatial error and lag models to explicitly account for the spatial dependence of unobserved neighborhood amenities. Our simple OLS estimates agree with the consensus in the literature that black neighborhoods have lower housing prices. However, racial price discounts are no longer significant when we account for the spatial dependence of errors. Our results suggest that price discounts in black neighborhoods are caused not by racial preferences but by the demand for amenities that are typically not found in black neighborhoods.
    Associated Program:
    Sanjaya DeSilva Anh Pham Michael Smith
    Related Topic(s):

  • Working Paper No. 588 | March 2010

    This paper proposes a difference-in-differences strategy to decompose the contributions of various types of discrimination to the black-white wage differential. The proposed estimation strategy is implemented using data from the Young Physicians Survey. The results suggest that potential discrimination plays a small role in the racial wage gap among physicians. At most, discrimination lowers the hourly wages of black physicians by 3.3 percent. Decomposition shows that consumer discrimination accounts for all of the potential discrimination in the physician market, and that the effect of firm discrimination may actually favor black physicians. Interpretations of the estimates, however, are complicated by the possibility that, relative to white physicians, black physicians negatively self-select into self-employment.

    Associated Program(s):
    Tsu-Yu Tsao Andrew Pearlman
    Related Topic(s):

  • Working Paper No. 565 | May 2009
    A Decomposition Analysis of Racial and Ethnic Disparities in Homeownership

    In recent years, as the homeownership rate in the United States reached its highest level in history, homeownership itself remained unevenly distributed, particularly along racial and ethnic lines. By using data from the 2000 Integrated Public Use Microdata Series (IPUMS) and 2006 American Community Survey (ACS) to study the trajectory into homeownership of black, Asian, white, and Latino households, this paper explores the various socioeconomic and demographic characteristics, as well as the distinct immigration experiences and spatial patterns that shape racial and ethnic inequality in homeownership. The unique (merged) dataset enables the authors to distinguish assimilation (length of residence) from immigration cohort effects, and to control for various spatial characteristics at the PUMA (Public Use Microdata Area) level. The paper employs a decomposition technique that delineates the distinct effects that composition differentials have on the visible white-minority disparity in homeownership. The findings reveal substantial differences along racial-ethnic lines, highlight the importance of immigration and spatial context in determining Asian and Mexican homeownership rates, and emphasize the unique role that family structure and unobserved factors (e.g. prejudice and discrimination) continue to play in shaping the black-white homeownership gap.

  • Working Paper No. 526 | December 2007
    A Reanalysis of American Jewish Committee Surveys

    American Jewish opinion about the Arab-Israel conflict matters for both American and Israeli politics as well as for American Jewish life. This paper undertakes an analysis of that opinion based on American Jewish Committee (AJC) annual polls. Recently, the AJC made the individual-level datasets for the 2000–05 period available to researchers. The paper focuses on opinion about the future of the West Bank (including East Jerusalem), because survey questions on that topic are relatively straightforward. Standard background variables (religious, cultural, political, and demographic) are all seen to be modestly related to opinion about the West Bank (in simple crosstabulations and multivariate analysis). However, with the exception of Orthodoxy, no factor is dramatically connected to particular opinions. Also, despite evidence of a positive association between age and emotional attachment to Israel, age is also positively associated with a willingness to accept proposed West Bank changes. Finally, a generalized concern about security seems to account for some of the diversity of opinion about the West Bank unexplained by the standard background variables.