We estimate a finite mixture dynamic programming model of schooling decisions in which the log wage regression function is set in a random coefficient framework. The model allows for absolute and comparative advantages in the labour market and assumes that the population is composed of eight...

We estimate a dynamic programming model of schooling decisions in which the degree of risk aversion can be inferred from schooling decisions. In our model, individuals are heterogeneous with respect to school and market abilities but homogeneous with respect to the degree of risk aversion. We...

This Paper analyses transitions into and out of three different labour market states: social assistance, unemployment and employment. We estimate a dynamic multinomial logit model, controlling for endogenous initial conditions and unobserved heterogeneity, using a large representative Swedish...

In this Paper, we formulate and estimate a structural, static model of household labour supply and multiple welfare programme participation. Given the complicated nature of both the income tax schedule and the benefit rules for different welfare programmes, we use unique access to a very...

This Paper analyses the persistence of poverty in Sweden using a hazard rate model based on multiple spells. The model also accounts for unobserved heterogeneity and possibly endogenous initial conditions. We estimate the model on a large representative Swedish panel dataset, LINDA, for the...

This paper analyses differences in welfare utilization between immigrants and natives in Sweden using a large panel data set, LINDA, for the years 1990 to 1996. Both welfare expenditures and immigration increased substantially in Sweden in the 1990's. We find that immigrants use welfare to a...

We estimate a flexible reduced form dynamic model of schooling choices and labor market outcomes in France. Our analysis focuses on the comparison between second-generation immigrants and their French-natives counterparts. We show that the gap in higher education attainments between those two...