Status Loss: The Burden of Positively Selected Immigrants

Immigrants experience an ambiguous social position: on the one hand, they tend to be positively selected on resources from the origin country; on the other, they often occupy the lower rungs of the status ladder in receiving countries. This study explores the implications of this ambiguity for two important individual outcomes: subjective social status and perceived financial situation. We study the diverse sample of immigrants in the European Social Survey and use the fact that, due to country differences in educational distributions, a given education level can entail a very different rank in the sending and receiving countries. We document a robust relationship whereby immigrants who ranked higher in the origin than in the destination country see themselves as being comparatively worse off. This finding suggests that the social position before migration provides an important reference point by which immigrants judge their success in the new country.