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Dynamics of employment assimilation

Author

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  • Alpaslan Akay

    (University of Gothenburg
    IZA
    LISER)

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

Suggested Citation

  • Alpaslan Akay, 2016. "Dynamics of employment assimilation," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-22, December.
    • Handle: RePEc:spr:izamig:v:5:y:2016:i:1:d:10.1186_s40176-016-0061-3
    DOI: 10.1186/s40176-016-0061-3
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    References listed on IDEAS

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    Cited by:

    1. Yu, Yip-Ching & Nimeh, Zina, 2020. "Segmented paths of welfare assimilation," MERIT Working Papers 2020-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Gustafsson, Björn Anders & Mac Innes, Hanna & Österberg, Torun, 2016. "Age at Immigration Matters for Labor Market Integration: The Swedish Example," IZA Discussion Papers 10423, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Dynamic panel data models; Employment assimilation; Initial values problem;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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