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The Family Investment Model Of Immigrants Assimilation Process

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The family investment model has been proposed as a model of immigrants’ assimilation process within a family context (Long, 1980). This model holds that as most immigrant families encounter credit-constraints in their first years at destination, they adopt a household strategy for financing post-migration human capital investments. Therefore, upon arrival, immigrant husbands – “the primary worker” – invest in their human capital, while wives work to provide the family with necessary income during the husbands’ investment period. The model predicts a rapid positive assimilation in labor supply for husbands and a decline in wives’ labor supply over time (Baker and Benjamin, 1997; Cobb-Clark and Crossley, 2004; Long, 1980).
Empirical findings

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