Immigrant-Native Differences in Earnings Mobility Processes

Nisar Ahmad, Rayhaneh Esmaeilzadeh and J?rgen Hansen
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Rayhaneh Esmaeilzadeh: Ministry of Community and Social Services, Canada
J?rgen Hansen: Department of Economics, Concordia University, Canada

Review of Economics & Finance, 2014, vol. 4, 13-32

Abstract: 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.

Keywords: Discrete Factor Approximation; Earnings Mobility Process; Immigrants and Natives; Quartile Mobility Rates; Spurious and Structural State Dependence (search for similar items in EconPapers)
JEL-codes: C33 C35 J15 J38 J61 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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