Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 277: Local Unemployment and the Earnings-Assimilation of Immigrant Men in Sweden: Evidence from Longitudinal Data, 1990-2000
Alpaslan Akay () and Kerem Tezic ()
Additional contact information
Alpaslan Akay: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Kerem Tezic: SLI, Swedish Institute for Food and Agricultural Economics, Postal: Box 730, SE 22007 LUND
Abstract: The earnings-assimilation of first-generation immigrant men in Sweden was analyzed using eleven waves of panel-data, 1990-2000. Employment-probabilities and earnings were estimated simultaneously in a random-effects model, using a quasifixed effects to control for both individual effects and panel-selectivity due to missing earnings-information. Assuming equal-period effects produced bias which could distort the findings. To correct the bias, local unemployment-rates were used to proxy for changing economy-wide conditions. Labour-market outcomes differed consider- ably across immigrant arrival cohorts, region and country of origin, and educational levels.
Keywords: Immigrants; earnings-assimilation; unbalanced panel; selection-bias; random-effects; Mundlak's formulation; local unemployment-rates
36 pages, First version: December 5, 2007. Revised: January 21, 2007.
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