Dynamics of employment assimilation

Alpaslan Akay ()
Additional contact information
Alpaslan Akay: University of Gothenburg

IZA Journal of Migration and Development, 2016, vol. 5, issue 1, 1-22

Abstract: 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. JEL Classification: C33, J15, J61

Keywords: Dynamic panel data models; Employment assimilation; Initial values problem (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1186/s40176-016-0061-3 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:izamig:v:5:y:2016:i:1:d:10.1186_s40176-016-0061-3

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40176

DOI: 10.1186/s40176-016-0061-3

Access Statistics for this article

IZA Journal of Migration and Development is currently edited by Amelie F. Constant, Denis Fougère and Tommaso Colussi

More articles in IZA Journal of Migration and Development from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().