Labor market transitions of immigrants with emphasis on marginalization and self-employment
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In developed countries, immigrants are more likely to be nonemployed and self-employed compared to natives. Based on register data of male immigrants in Denmark, we performed a detailed investigation of the immigrant–native difference in transition patterns across labor market states. We find that a high proportion of immigrants from non-Western countries tend to be marginalized relative to natives, and they tend to use self-employment to escape marginalization.
KeywordsDiscrete competing risks Panel data Self-employment
JEL ClassificationC23 C41 J64
We thank Lars Muus, George Neumann, and Stephen Jones for helpful discussions, and we appreciate comments from two anonymous referees, seminar participants at McMaster University, York University, University of Illinois at Chicago, University of Copenhagen, University of Aarhus, Aarhus School of Business, Copenhagen Business School, IZA, the ESPE Conference, and the CEPR/TSER Workshop. The usual disclaimer applies.
This project was supported financially by the Danish National Research Foundation (the FREJA grant) and the Institute of Local Government Studies, AKF. In addition, Helena Skyt Nielsen was supported by the Social Science Research Council, and Mette Ejrnæs and Allan Würtz acknowledge support from the Center for Applied Microeconometrics (CAM). CAM’s activities are financed by a grant from the Danish National Research Foundation.
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