This paper analyzes the process of entry into the Israeli labor market among a panel of highly skilled immigrants who moved from the former USSR to Israel. We estimate a nonstationary, finite horizon search model with exogenous wage growth that is capable of capturing the main features of this process; a speedy entry into the labor force, an initial phase of work at low skill occupations, a gradual occupational upgrading and a sharp increase in wages. The estimated parameters of the model, together with information on the wages of immigrants from earlier waves, allow us to predict an occupational path and associated wages, for each new immigrant, from the time of arrival until retirement.
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Paper provided by Tel Aviv in its series Papers with number
26-99.
Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
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