Heterogeneous unemployment dynamics of ancestral Swedes and second-generation immigrants
2020
Many immigrant groups
disproportionately experience unemployment and this disadvantage often extends
to their Swedish-born children—the second generation. This paper contributes to
this stream of research by studying unemployment dynamics of ancestral Swedes
and second-generation immigrants in Sweden. In particular, we ask: To what
extent does unemployment persist over individuals’ working careers, i.e. what
is the ‘causal’ link between past and current unemployment? And are these
dynamics different for ancestral Swedes and second generation immigrants in
Sweden? We answer these questions using correlated dynamic random-effects logit
models. This type of analysis is particularly well-suited for our scope because
it allows us to study the persistence of unemployment as the ‘causal’
relationship between past and current unemployment experiences. We use Swedish
register data to follow individuals over their early working career – most
importantly since they leave education and enter the labor market. The results
indicate that although the odds of remaining unemployed in time t if one was
unemployed in t-1 are nearly equivalent across groups, the consequences of
state dependence are far more pronounced for second generation immigrants with Middle-Eastern,
Eastern European, and Southern European origins.
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