To this end, the paper estimates a DCDP model in which immigrants can be in one of the following states: employed in a blue-collar occupation, employed in a white-collar occupation, attending a training course in a blue-collar occupation, attending a training course in a white-collar occupation, or unemployed. An immigrant’s language ability (which is self-reported) is assumed to evolve exogenously. In each period, individuals have some probability of receiving a white- or blue-collar job offer and of receiving a white-collar training offer. Blue-collar training is always an option for those with sufficient knowledge of Hebrew. Wage offers depend on the immigrants’ accumulated human capital, which in turn depends on accumulated experience and ...
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