National identity and the integration of second-generation immigrants

How does immigrants' national identity affect integration in an inter-generational context? The theoretical frame-work of this paper predicts that a pronounced origin country identity of immigrants may reduce investments in country-specific human capital -with negative consequences for the school and labor market success of the sec-ond generation. The empirical analysis exploits rich survey data from the U.S. and relies on a novel IV strategy inspired by the epidemiological approach, where an aggregate measure of national pride in the country of origin serves as an instrument for immigrants' origin attachment. Results show that children whose parents are strongly attached to their origin country have less contact to natives and develop a stronger origin country identity, while their host country identity is not found to be affected. Consistent with the theoretical argument, they speak En-glish less frequently and more poorly, and perform worse in school compared to peers whose parents are less attached to their origin country. Additional results from the CPS suggest negative long-term effects on labor market outcomes.