Immigrant-Native Differences in Earnings Mobility Processes: Evidence from Canadian and Danish Data

Nisar Ahmad and Rayhaneh Esmaeilzadeh
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Rayhaneh Esmaeilzadeh: Department of Economics Concordia University

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

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: Earnings Mobility Process; Immigrants and Natives; Spurious and Structural State Dependence; Quartile Mobility Rates; Discrete Factor Approximation (search for similar items in EconPapers)
JEL-codes: C33 C35 J15 J38 J61 (search for similar items in EconPapers)
Pages: 60
Date: 2009-12-04
New Economics Papers: this item is included in nep-lab and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2009-13

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