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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- 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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CLS Working Papers
01-1, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
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- Jeffrey M Wooldridge, 2002.
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CeMMAP working papers
CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
- Victoria Prowse, 2005.
"State Dependence in a Multi-state Model of Employment Dynamics,"
Economics Series Working Papers
2005-W20, University of Oxford, Department of Economics.
- Prowse, Victoria L., 2005. "State Dependence in a Multi-State Model of Employment Dynamics," IZA Discussion Papers 1623, Institute for the Study of Labor (IZA).
- Blume, Kraen & Verner, Mette, 2007.
"Welfare dependency among Danish immigrants,"
European Journal of Political Economy,
Elsevier, vol. 23(2), pages 453-471, June.
- Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Denmark," OECD Social, Employment and Migration Working Papers 50, OECD Publishing.
- Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
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