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An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes

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Author Info

  • Nabanita Datta Gupta

    ()
    (Department of Economics and Business, Aarhus University)

  • Lene Kromann

    ()
    (CBS, Copenhagen, Denmark)

Abstract

Using a search model for Danish labor market entrants, we are one of the first studies to test whether second-generation immigrants have the same job-offer arrival and layoff rates as ethnic Danes have. We contribute to the search literature by incorporating matching as a way to ensure sub-sample homogeneity. Thus, we match second-generation immigrants to their ethnic Danish twins on the basis of parental characteristics and informal network quality. There are big differences before matching, but after matching, second-generation immigrants perform as well or better than their ethnic Dane counterparts do on the labor market, though not with respect to layoffs. This result is mainly driven by the group of high school graduates and those with a primary school education only. Second generation immigrants with vocational education, males in particular, face both significantly lower arrival rates when unemployed and significantly higher layoff rates than those of their ethnic Danish twins.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2013-04.

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Length: 44
Date of creation: 28 Feb 2013
Date of revision:
Handle: RePEc:aah:aarhec:2013-04

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Firm behavior; equilibrium search model; matching; second-generation immigrantsJ15; J61; J71;

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Cited by:
  1. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2013. "Immigrant Job Search Assimilation in Canada," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20136, University of Western Ontario, CIBC Centre for Human Capital and Productivity.

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