In developed
countries, immigrants are more likely to be non-employed and self-employed
compared to natives. Based on register data of male immigrants in Denmark, we
perform a detailed investigation of the immigrant-native difference in
transition patterns across labor market states. We find that a high proportion
of immigrants from non-western countries tend to be marginalized relative to
natives, and they tend to use self-employment to escape marginalization.
Keywords:
discrete competing risks, duration, panel data, self-employment, unobserved
heterogeneity.
JEL: C23, C25, C41, J23