An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes

Nabanita Datta Gupta and Lene Kromann ()
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Lene Kromann: CBS, Copenhagen, Denmark, Postal: 8210 Aarhus V, Denmark

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: Using a search model for Danish labor market entrants, we are one of the first studies to test whether second-generation immigrants have the same job-offer arrival and layoff rates as ethnic Danes have. We contribute to the search literature by incorporating matching as a way to ensure sub-sample homogeneity. Thus, we match second-generation immigrants to their ethnic Danish twins on the basis of parental characteristics and informal network quality. There are big differences before matching, but after matching, second-generation immigrants perform as well or better than their ethnic Dane counterparts do on the labor market, though not with respect to layoffs. This result is mainly driven by the group of high school graduates and those with a primary school education only. Second generation immigrants with vocational education, males in particular, face both significantly lower arrival rates when unemployed and significantly higher layoff rates than those of their ethnic Danish twins.

Keywords: Firm behavior; equilibrium search model; matching; second-generation immigrantsJ15; J61; J71 (search for similar items in EconPapers)
JEL-codes: J15 J61 J71 (search for similar items in EconPapers)
Pages: 44
Date: 2013-02-28
New Economics Papers: this item is included in nep-dem, nep-dge, nep-lab, nep-mig and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2013-04

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