Immigrant-Native Differences in Earnings Mobility Processes
This study compares the earnings mobility between immigrants and natives within and between Denmark and Canada. Both countries have different labour market conditions and immigration history which leads to an interesting comparison of earning mobility processes. The paper employs a dynamic multinomial logit model with discrete factor approximation for the specification of unobserved individual heterogeneity. The model takes into account the effect of the endogenous initial conditions problem and unobserved heterogeneity to separate structural and spurious state dependence. The results show that immigrants-native differences in earnings mobility, structural state dependence, and segmentation of earnings distribution are relatively more prominent in Denmark compared to Canada.
Volume (Year): 4 (2014)
Issue (Month): (Feburary)
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References listed on IDEAS
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CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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741, University of Warwick, Department of Economics.
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- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
- Charles M. Beach & Ross Finnie, 2001. "Cyclical Changes in Short-Run Earnings Mobility in Canada, 1982-1996," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.), The State of Economics in Canada: Festschrift in Honour of David Slater, pages 453-484 Centre for the Study of Living Standards.
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