Labor Market Transitions of Immigrants with Emphasis on Marginalization and Self-Employment

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.