This article analyzes the intergenerational mobility of immigrants. Us
ing the 1940-70 censuses, the study reveals an important link between
the earnings of immigrants and the earnings of their American-born chi
ldren. Although there is some regression toward the mean, the earnings
of second-generation Americans are strongly affected by variables des
cribing economic conditions in the source countries of their parents.
Current immigration policy, therefore, not only determines how immigra
nts perform in the labor market but also determines tomorrow's differe
nces in the labor market experiences of American-born ethnic groups.