US Offers Upward Mobility For Immigrants:
Immigration to the United States continues to offer a route to escape poverty — if not for poor immigrants themselves, then for their sons, according to a study published by a team of economic historians at Princeton, Stanford and the University of California, Davis.
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| Average income rank of sons with parents in 25th percentile. Source: New York Times |
Top 5 Upwardly Mobile Groups in America:
The study shows the adult outcomes of sons born in 1980 who grew up in poor families at about the 25th percentile of income distribution in the United States. Pakistani-American sons born in poor households are now at 59th percentile of income in the United States.
Sons of immigrants from Hong Kong in 25th percentile have the highest economic mobility are 64th percentile followed by China at 63rd, India at 62nd and Taiwan at 60th percentile. Sons of American born fathers are at 46th percentile, much lower than for the sons of immigrants. Only the sons of immigrants from the Caribbean island nations of Haiti, Trinidad and Tobago and Jamaica have lower mobility.
Economic Mobility in Pakistan:
A 2012 study of 22 nations conducted by Prof Miles Corak for the Organization for Economic Cooperation and Development (OECD) has found income heritability to be greater in the United States, the United Kingdom, Italy, China and 5 other countries than in Pakistan.
The study's findings, presented by the author in testimony to the US Senate Finance Committee on July 6, 2012, rely on the computation of "inter-generational earnings elasticity" which the author explains as follows:
"(It) is the percentage difference in earnings in the child’s generation associated with the percentage difference in the parental generation. For example, an intergenerational elasticity in earnings of 0.6 tells us that if one father makes 100% more than another then the son of the high income father will, as an adult, earn 60% more than the son of the relatively lower income father. An elasticity of 0.2 says this 100% difference between the fathers would only lead to a 20% difference between the sons. A lower elasticity means a society with more mobility."
Intergenerational Mobility in Pakistan:
Corak calculates that the intergenerational earnings elasticity in Pakistan is 0.46, the same as in Switzerland. It means that a difference of 100% between the incomes of a rich father and a poor father is reduced to 46% difference between their sons' incomes. Among the 22 countries studied, Peru, China and Brazil have the lowest economic mobility with inter-generational elasticity of 0.67, 0.60 and 0.58 respectively. The highest economic mobility is offered by Denmark (0.15), Norway (0.17) and Finland (0.18).
The author also looked at Gini coefficient of each country and found reasonably good correlation between Gini and intergenerational income elasticity.
In addition to Corak, there are other reports which confirm that Pakistan has continued to offer significant upward economic and social mobility to its citizens over the last two decades. Since 1990, Pakistan's middle class had expanded by 36.5% and India's by only 12.8%, according to an ADB report titled "Asia's Emerging Middle Class: Past, Present And Future".
More evidence of upward mobility is offered by recent Euromonitor market research indicating that Pakistanis are seeing rising disposable incomes. It says that there were 1.8 million Pakistani households (7.55% of all households) and 7.9 million Indian households (3.61% of all households) in 2009 with disposable incomes of $10,001 or more. This translates into 282% increase (vs 232% in India) from 1995-2009 in households with disposable incomes of $10,001 or more. Consumer spending in Pakistan has increased at a 26 percent average pace the past three years, compared with 7.7 percent for Asia, according to Bloomberg.
Geniuses From Pakistan:
Pakistani-American have been described as "geniuses" by CNN analyst Van Jones. Here's Jones talking about Muslim-Americans and Pakistani-Americans in 2016:
"Honestly, if a Muslim family moved next door to you, you would be the happiest person in the world. First of all, the chances of your kids getting into trouble just went way down. OK, went way down.
And so, when you have people who are now afraid to come here--that's starting to happen--you have geniuses from Pakistan, who are from Indonesia, who now (think to themselves) "I'm not safe here".
That becomes an economic problem for America long term. So that we're starting to do stuff here that doesn't make good sense for what has made us great so far."
Summary:
Pakistani-Americans are among the top 5 groups in terms of upward economic mobility, according to a study by researchers at Princeton, Stanford and UC Davis. Other immigrant groups with high mobility in America include Chinese and Indians. A 2012 study of 22 nations conducted by Prof Miles Corak for the Organization for Economic Cooperation and Development (OECD) has found income heritability to be greater in the United States, the United Kingdom, Italy, China and 5 other countries than in Pakistan. Pakistani-American have been described as "geniuses" by CNN analyst Van Jones.
https://www.youtube.com/watch?v=gr5cLv8Dj2I
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American Immigration and Ethnicity by Gerber and Kraut.
ReplyDeleteHistorically, Indians have rejected foreign ways and foreign people as profoundly corrupting, even polluting, as they endured centuries of foreign domination. In the 19th century, Indians who went abroad were obliged to undergo elaborate purification rituals when they returned. Today the problem is identified not as loss of ritual purity but as loss of culture. Immigrants, by leaving the motherland, and immersing themselves in an alien cultural contexts, have lost their Indian-ness. Overseas Indians are thought to have lost their language, their morals, their religion, their sense of community, and their connectedness to India. In pursuit of foreign wealth, they have adopted the soul-less, anomic, and licentious ways of the alien.....they are not considered "real Indians".
https://books.google.com/books?id=-20YDAAAQBAJ&q=purification#v=onepage&q=purification&f=false
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Today, new arrivals, legal and undocumented alike, find ample opportunities for employment in the United States. Migrant workers cross the Mexican border plant and harvest. Their low-cost labor keeps the prices of fruits and vegetables inexpensive for Americans. They often take jobs in the service sector that are either so low-paying or undesirable that native-born workers refuse them. However, at the other end of the scale, well-educated newcomers from China, India and Pakistan are transforming America's high-tech industries, especially in the areas of computer technology. The computer has rejuvenated home work. Men and women can support their families, working in a variety of industries that require online labor.
The expansion of hospital based medical care, and the institutions of broad-based social programs, such as Medicare and Medicaid in 1965, resulted in the need for thousands of skilled professionals. The 1965 Immigration Act, which abolished national quotas in favor of those based on professional status, aimed to encourage the immigration of professionals. Thousands of unemployed professionals from India and Pakistan flocked to the United States............Medical graduates especially were encouraged , with offers of free apartments and secure jobs at hospitals.
https://books.google.com/books?id=-20YDAAAQBAJ&q=purification#v=onepage&q=Pakistan&f=true
At 17.5 Million, Overseas Indians Are Largest Community In The World: UN
ReplyDeleteMigrants from Mexico constituted the second largest diaspora - 11.8 million, followed by China - 10.7 million, Russia - 10.5 million, Syria - 8.2 million, Bangladesh - 7.8 million, Pakistan - 6.3 million, Ukraine - 5.9 million, the Philippines - 5.4 million and Afghanistan - 5.1 million.
https://www.ndtv.com/india-news/at-17-5-million-overseas-indians-are-largest-community-in-the-world-un-2102843
The International Migrant Stock 2019, a dataset released by the Population Division of the UN Department of Economic and Social Affairs or DESA today, provides the latest estimates of the number of international migrants by age, sex and origin for all countries and areas of the world.
The estimates are based on official national statistics on the foreign-born or the foreign population obtained from population censuses, population registers or nationally representative surveys.
The report said that the top 10 countries of origin account for one-third of all international migrants. In 2019, with 17.5 million persons living abroad, India was the leading country of origin of international migrants.
Migrants from Mexico constituted the second largest diaspora - 11.8 million, followed by China - 10.7 million, Russia - 10.5 million, Syria - 8.2 million, Bangladesh - 7.8 million, Pakistan - 6.3 million, Ukraine - 5.9 million, the Philippines - 5.4 million and Afghanistan - 5.1 million.
India hosted 5.1 million international migrants in 2019, less than the 5.2 million in 2015. International migrants as a share of total population in India was steady at 0.4 per cent from 2010 to 2019.
The country hosted 207,000 refugees, the report said adding that refugees as a share of international migrants in the country was four per cent. Among the international migrants in the country, the female population was 48.8 per cent and the median age of international migrants was 47.1 years. In India, the highest number of international migrants came from Bangladesh, Pakistan and Nepal.
In 2019, regionally, Europe hosted the largest number of international migrants (82 million), followed by Northern America (59 million) and Northern Africa and Western Asia (49 million).
At the country level, about half of all international migrants reside in just 10 countries, with the United States of America hosting the largest number of international migrants (51 million), equal to about 19 per cent of the world's total.
Germany and Saudi Arabia host the second and third largest numbers of migrants (13 million each), followed by Russia (12 million), the United Kingdom (10 million), the United Arab Emirates (9 million), France, Canada and Australia (around 8 million each) and Italy (6 million).
The share of international migrants in total population varies considerably across geographic regions with the highest proportions recorded in Oceania (including Australia and New Zealand) (21.2 per cent) and Northern America (16.0 per cent) and the lowest in Latin America and the Caribbean (1.8 per cent), Central and Southern Asia (1.0 per cent) and Eastern and South-Eastern Asia (0.8 per cent).
A majority of international migrants in sub-Saharan Africa (89 per cent), Eastern and South-Eastern Asia (83 per cent), Latin America and the Caribbean (73 per cent), and Central and Southern Asia (63 per cent) originated from the region in which they reside.
Pakistan is among top three countries with high upward social mobility across Asia, Africa, and the Middle East region, Standard Chartered Bank Pakistan’s Retail Banking Head Syed Mujtaba Abbas told a group of business journalists on Monday.
ReplyDeleteSocial mobility is the movement of an individual or group from one stratum of society to another over time.
A growing middle class is developing in the country, which has triggered this upward social mobility in the country, Abbas said while sharing the findings of the SCB’s Emerging Affluent Study 2018; ‘Climbing the Prosperity Ladder’.
The emerging affluent comprises consumers who experience impressive earnings growth, and higher levels of education, employment, and homeownership than their parents.
The study, which examines the views of 11,000 people from 11 markets across Asia, Africa and the Middle East, shows Pakistan among top three along with India and China.
Related: Pakistan among six fastest growing economies of 2030
The study focused on people with a monthly income above Rs40,000, who age between 25 and 55 years. Nearly two-thirds of 1,000 Pakistanis surveyed for the study said that they experienced upward social mobility. This is higher than the sample’s overall average, which stands at 59%.
These people are doing better socially and financially as compared to their parents, Abbas said. They have got money to spend, save, and invest and they are driving the economic growth too.
For example, these people bought houses, became managers or owned a business early in their careers as compared to their parents.
Among Pakistani respondents, 44% said their salaries increased by a tenth or more last year and a third of them said their earnings jumped by a half or more in the last five years.
Similarly, nearly 90% of them said they went to a university, a much higher percentage compared to their parents who went to university (66% for fathers and 49% for mothers).
These people say that online banking and digital money management helped them achieve their financial targets.
The study found that 88% respondents owned a house as compared to their parents as the same age (81%). The journalists said that the stats were in contrast to the prevailing trends in the real estate sector, where people with Rs40,000 income level can’t buy a house.
Abbas said the findings reflect the sample of 1,000 and can be expanded for a better and bigger picture since the survey’s finding also show there was still a lot of opportunity for more upward mobility.
https://www.samaa.tv/news/2018/10/pakistan-among-top-three-countries-with-high-upward-mobility/
https://av.sc.com/corp-en/content/docs/SC-Emerging-Affluent-Study-2018-Climbing-the-Prosperity-Ladder.pdf
Study reveals social mobility booming in Pakistan
ReplyDeletehttps://profit.pakistantoday.com.pk/2018/10/29/study-reveals-social-mobility-booming-in-pakistan/
The Standard Chartered Bank (SCB-Pak) has conducted a study on ‘Emerging Affluent Consumers’ in eleven countries including Pakistan, in which it found that nearly two-thirds or 64 per cent of emerging affluent consumers in Pakistan are experiencing upward social mobility while 11 per cent are enjoying ‘supercharged’ social mobility.
The Emerging Affluent Study 2018 – climbing the prosperity ladder – examines the views of 11,000 emerging affluent consumers- individuals who are earning enough to save and invest – from 11 markets across Asia, Africa and the Middle East.
Commenting on the study, SCB Retail Banking Head Syed Mujtaba Abbas said, “Ambitious consumers are on an upward social trajectory; they are surpassing their parents’ success in education, careers and home ownership. As their ambitions and aspirations grow, they are demanding convenient financial services and digital technology to broaden their access to money management and advance their financial wellbeing. It is an exciting journey where they are not only improving their own lives, but they are also fuelling growth in some of the world’s most exciting markets.”
According to the study, the average figure for social mobility among the emerging affluent consumers across the markets is 59 per cent, and of these 7 per cent are experiencing supercharged social mobility.
Pakistan’s socially mobile consumers, as identified by the study, have had impressive earnings growth, with almost half (44 per cent) enjoying a salary increase of 10 per cent or more in the past year, and more than a third (34 per cent) seeing their earning jump by 50 per cent or more in the past five years.
In Pakistan, the socially mobile people are also better educated and achieving higher levels of employment and homeownership than their parents. As many as 89 per cent went to universities, compared to 66 per cent of their fathers and less than half (49 per cent) of their mothers, while 83 per cent are in a management position or running their own businesses compared to 65 per cent of their fathers and 28 per cent of their mothers. Similarly, as many as 88 per cent of the socially mobile people own their own home, compared to 81 per cent of their parents at the same age.
Levels of optimism among the emerging affluent in Pakistan are even higher than reality, with 79 per cent believing they are in a better financial position than their parents compared to the 64 per cent in the study that are actually socially mobile.
More than two-thirds (70 per cent) of the emerging affluent in Pakistan say their familiarity with digital tools have been vital to their personal success, while 73 per cent say online banking makes them feel that they have more control over their money and investments, and 67 per cent say digital money management has helped them get closer to achieving their financial goals.
Pakistan’s emerging affluent is comfortable going online for financial advice, with the majority (60 per cent) saying they would invest in financial products online if an on-demand adviser was available. Risk is not a problem for the emerging affluent if strong rewards are possible 58 per cent would accept a high level of risk for a high level of return when investing their money in online financial products.
69% Pakistanis feel that their children will have a better life than them in a global Gallup International survey in 64 countries
ReplyDeleteFigure in India is 43%
https://twitter.com/bilalgilani/status/1619768586276569088?s=20&t=AfVrdN1yfTuVjhOxMf22eQ
https://www.gallup-international.bg/en/46667/fsdfdsfs/
The most positive country among those surveyed is Nigeria (90% minus 6%) and the most negative is Slovenia a (14% minus 53%). Among the prominent countries where GIA could poll, expectations for their children’s future are highest in Nigeria is followed by Russia (52% minus 10%), Mexico (48% minus 30%), the USA (43% minus 31%) and India (43% minus 33%).
When combining the two questions, another perspective is added. For instance, Moldova shows a total of 86 (45% saying that their live is worse life than the one of their parents plus 41% expecting a worse life of today’s children), followed in this negative ranking by North Macedonia (82: 35% negative assessments plus 47% negative predictions), Afghanistan (81), Syria and Italy (78), etc.
Most of the countries are still positive on both questions, but if one looks for instance for countries with both above 50% positive answers, Nigeria stands out with 171 (81% positive for today plus 90% positive for tomorrow), followed by Kosovo (162), the United Arab Emirates (150), Ghana (141), Pakistan (134), etc.
Findings are proved, confirming that developing parts of the world share more hope. National and political peculiarities leave their footprint but in general is seems that the closer the war and troubles are, the worse are the answers on both issues – as expected.
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Every second citizen (51%) of the world believes that their life is better than that of their parents. The other half of the people asked is equally divided between those who assess a worse life (23%) and those who find it the same (23%). 3% could not answer. Satisfaction with the living standard is a key factor for people to believe that they have a better life than their parents. But in some rich regions like Europe this is not so valid.
Expectations for the life of today’s children are predominantly good as well but lower than the comparison of own life to the life of the previous generation – 44% are expecting a better life for today’s children in comparison to our lives, 28% expecting a worse life, 20% expecting about the same and 8% not responding. Aged people are less sure about the better future of the next generation. More money unsurprisingly seems to result in more confidence in the future on a personal level, but on a national level countries that experience or used to experience difficulties are the ones to believe stronger in better future for the next generation. Unsurprisingly again.