State Dependence in Unemployment among Danish Immigrants

Nisar Ahmad

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

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.

Keywords: Immigrants; unemployment; state dependence; unobserved heterogeneity; dynamic random effects models (search for similar items in EconPapers)
JEL-codes: C23 C25 J22 (search for similar items in EconPapers)
Pages: 24
Date: 2009-12-04
New Economics Papers: this item is included in nep-dcm and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2009-12

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