Department of Economics and Business Economics

State Dependence in Unemployment among Danish Immigrants

Research output: Working paperResearch


  • Wp09 12

    Final published version, 546 KB, PDF document

  • Nisar Ahmad, Denmark
  • School of Economics and Management
This study examines the extent state dependence among unemployed Danish immigrants in a dynamic discrete choice framework. Three alternative methodologies are employed to control for the problem of the initial condition. The empirical findings show that there is a considerable correlation between the unobserved individual heterogeneity and the initial condition and that the degree of state dependence is overstated if we do not address this problem. The results show that an individual who was unemployed at period "t-1" has 6.5 percentage points higher probability of being unemployed again at period t compared to an individual who was employed at period "t-1". This average partial effect is the same for western compared to non-western immigrants and women compared to men.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages24
Publication statusPublished - 2009

    Research areas

  • Immigrants, unemployment, state dependence, unobserved heterogeneity, dynamic random effects models

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