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Dynamics of the Employment Assimilation of First-Generation Immigrant Men in Sweden: Comparing Dynamic and Static Assimilation Models with Longitudinal Data

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  • Akay, Alpaslan

    ()
    (University of Gothenburg)

Abstract

We analyse the dynamics of employment assimilation of first-generation immigrant men in Sweden using a high-quality, register-based panel data set. It is discussed that when there are significant differences between employment status persistence of immigrants and natives, the standard static assimilation model produces biased predictions for the relative labour market outcomes for immigrants. We find significant persistence of employment status which differs between immigrants and natives, and also across immigrant groups. The static assimilation model overestimates (underestimates) the short-run (long-run) marginal assimilation rates. We find 10-15 percentage points lower initial employment probability disadvantage but the years to assimilation are 5-10 years longer compared to the standard static assimilation model.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4655.

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Length: 62 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4655

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Keywords: dynamic random-effects probit model; employment assimilation; initial values problem;

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References

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Cited by:
  1. Haan, Peter & Kemptner, Daniel & Uhlendorff, Arne, 2012. "Bayesian Procedures as a Numerical Tool for the Estimation of Dynamic Discrete Choice Models," IZA Discussion Papers 6544, Institute for the Study of Labor (IZA).

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