Abstract
We study cultural integration as an equilibrium outcome of marital matching along cultural and education lines and intra-household investment decisions regarding fertility and cultural socialization. We show that our marriage model allows us to identify cultural-ethnic group specific investment parameters as well as spousal preferences for marital matching. Structural estimates fit the data well and reveal a strong demand to preserve cultural identity on the part of immigrants as well as limited acceptance of the immigrants’ cultural diversity on the part of natives. Furthermore, these estimates reveal a substantial heterogeneity of the parental value of children’s education across cultures. Nonetheless, our estimates imply substantial - though heterogeneous - cultural integration rates across immigrant groups in simulations.