APPLIED MICRO: Helping Immigrants Succeed: Long-Term Impacts of Two Early Childhood Policies; Professor Gordon B. Dahl (University of California, San Diego)

Abstract

In aging, societies, the economic contributions of immigrants and their children are increasingly critical to sustaining growth. While substantial efforts are directed at integrating first-generation immigrants, the integration of their children—the second generation—receives comparatively less attention, despite evidence of persistent challenges to their full social and economic integration. This paper investigates the long-run effects of two early childhood policies on the educational attainment of second-generation immigrants in Germany: birthright citizenship and expanded public childcare. Using regression discontinuity designs and high-quality social security data, we find that both policies significantly improve high school completion and university enrollment rates among second-generation immigrants. Our analysis reveals distinct mechanisms driving these outcomes. Birthright citizenship motivates higher parental investments in children's education throughout their schooling careers, reflecting higher expected returns to human capital investments. Meanwhile, expanded public childcare enhances early language acquisition, a key determinant of later academic success. These findings underscore the pivotal role of early interventions in addressing integration challenges and advancing equity in increasingly diverse societies.