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The aim of this study is to determine whether immigrants and their children use a compensation strategy that involves achieving higher than expected education, given their parents’ level of education and income. The study uses data for all individuals in Sweden who finished elementary school from 1990 to 1992. Parents’ level of education and income is in general positively associated with higher odds of having university education. However, some immigrant groups show the reverse pattern of the impact of parents’ income. The results support a compensation strategy developed in groups and families with low level of integration in the labor market.