Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 240: Economic Performance of Turkish Immigrant Men in the European Labour-Market: Evidence from Sweden
Alpaslan Akay (), Gokhan Karabulut () and Kerem Tezic ()
Additional contact information
Alpaslan Akay: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Gokhan Karabulut: Department of Economics, Istanbul University, Postal: Beyazit, Istanbul, Turkey
Kerem Tezic: SLI , Swedish Institute for Food and Agricultural Economics, Postal: Box 730 SE 22007 Lund, Sverige
Abstract: This paper uses eleven waves of panel-data to analyse the earnings assimilation of first-generation Turkish immigrant men in Sweden. Employment-probabilities and earnings are estimated in a fixed-effects sample selection model in order to control for both individual effects and panel-selectivity, which arise due to missing earnings-information. Local unemployment rates are used as proxy for varying local market conditions in order to control for the bias caused by equal-period-effect assumption. The results indicate that the earnings of Turkish immigrant men converge to those of natives, but their probability of being employed does not. The assimilation response of Turkish immigrants differs considerably, depending on arrival-cohorts and educational levels.
Keywords: Immigrants; earnings assimilation; unbalanced panel; sample-selection; local unemployment- rates
26 pages, December 19, 2006
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