The life-cycle and opportunities of migrants and natives in the Danish experience

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.