Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149460
Authors: 
Akay, Alpaslan
Year of Publication: 
2016
Citation: 
[Journal:] IZA Journal of Migration [ISSN:] 2193-9039 [Volume:] 5 [Year:] 2016 [Issue:] 13 [Pages:] 1-22
Abstract: 
This paper investigates the dynamics of immigrants' employment assimilation in comparison with the standard static assimilation model. When the effect of past employment experience on current employment possibilities differs between immigrants and natives, then the static assimilation model might produce biased and unrealistic predictions of the relative employment probabilities of immigrants. Using a high-quality panel dataset collected in Sweden and a state-of-the-art non-linear dynamic assimilation model, we find a large employment status persistence that substantially differs between immigrants and native Swedes. We show that failing to control for the differential past labor market experience leads to an incorrect account of the host country-specific human capital that results to a large overestimation (underestimation) of the short-run (long-run) marginal assimilation rates when using the standard static assimilation model.
Subjects: 
Dynamic panel data models
Employment assimilation
Initial values problem
JEL: 
C33
J15
J61
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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