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State Dependence in Unemployment among Danish Immigrants

Author

Listed:
  • Nisar Ahmad

    (School of Economics and Management, University of Aarhus, Denmark)

Abstract

This study examines the extent state dependence among unemployed Danish immigrants in a dynamic discrete choice framework. Three alternative methodologies are employed to control for the problem of the initial condition. The empirical findings show that there is a considerable correlation between the unobserved individual heterogeneity and the initial condition and that the degree of state dependence is overstated if we do not address this problem. The results show that an individual who was unemployed at period “t-1” has 6.5 percentage points higher probability of being unemployed again at period t compared to an individual who was employed at period “t-1”. This average partial effect is the same for western compared to non-western immigrants and women compared to men.

Suggested Citation

  • Nisar Ahmad, 2009. "State Dependence in Unemployment among Danish Immigrants," Economics Working Papers 2009-12, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2009-12
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    File URL: https://repec.econ.au.dk/repec/afn/wp/09/wp09_12.pdf
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    More about this item

    Keywords

    Immigrants; unemployment; state dependence; unobserved heterogeneity; dynamic random effects models;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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