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

62 Pages Posted: 28 Dec 2009

See all articles by Alpaslan Akay

Alpaslan Akay

IZA Institute of Labor Economics

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.

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

JEL Classification: C33, J15, J61

Suggested Citation

Akay, Alpaslan, Dynamics of the Employment Assimilation of First-Generation Immigrant Men in Sweden: Comparing Dynamic and Static Assimilation Models with Longitudinal Data. IZA Discussion Paper No. 4655, Available at SSRN: https://ssrn.com/abstract=1528590

Alpaslan Akay (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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