An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes
AbstractUsing 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 InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2013-04.
Date of creation: 28 Feb 2013
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Web page: http://www.econ.au.dk/afn/
Firm behavior; equilibrium search model; matching; second-generation immigrantsJ15; J61; J71;
Other versions of this item:
- Datta Gupta, Nabanita & Kromann, Lene, 2013. "An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes," IZA Discussion Papers 7257, Institute for the Study of Labor (IZA).
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-09 (All new papers)
- NEP-DEM-2013-03-09 (Demographic Economics)
- NEP-DGE-2013-03-09 (Dynamic General Equilibrium)
- NEP-LAB-2013-03-09 (Labour Economics)
- NEP-MIG-2013-03-09 (Economics of Human Migration)
- NEP-URE-2013-03-09 (Urban & Real Estate Economics)
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