Memorandum,
Oslo University, Department of Economics

Abstract: This paper employs a flexible dependent hazard rate model to examine the transition to work, job durations and subsequent transitions into and out of the welfare system for all the individuals who participated on a vocational rehabilitation program in Norway during 1995-2002. The effect of being a non-western immigrant on the probability of finding, keeping, and re-finding a job is shown to differ substantially across genders, being particularly favorable for women relatively recently arrived from Africa, Asia or Eastern Europe. I find substantial non-western immigrant business cycle sensitivity regarding the transition(s) to employment but not to unemployment.

Keywords: Vocational rehabilitation; labor market transitions: job duration; immigrants

JEL-codes: A10

54 pages, June 15, 2007

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