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Wages and unemployment of immigrants and natives in Sweden
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
2002 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Ethnic Di®erences in the Swedish Youth Labor Market This paperinvestigates whether or not ethnic background a®ects labormarket success for young people in Sweden. A multinomial logit model of mutually exclusive labor market outcomes is estimated using the Swedish School Leaver Survey on young people who graduated from compulsory school in 1988. This study shows that those with immigrant backgrounds have a lower employment probability and a higher risk of becoming unemployed or not being in the labor force than individuals born in Sweden with Native-born parents. Di®erences in Swedish-language skills, educational attainment, gender, time spend in Sweden or other individual characteristics cannot explain the results. This paper also reports results ofa simulation in which labormarket outcomes withrespectto certainobserved individual characteristics, are independent of ethnic background. The results indicates that immigrants and people with immigrant backgrounds would have a higher employment share and a lower unemployment share than they actually have.

The Immigrant-Native Wage Gap in Sweden: Is There a Di®erence Between the Top and the Bottom of the Wage Distribution? This study analyzes the wage gap between immigrants of di®erent origin and natives in Sweden using cross-sectional data for 1987, 1991, and 1995. There is a di®erence in the observed immigrant-native wage gap between the top and bottom percentiles of the wage distribution. The quantile regression technique is used to estimate the wage gap at these percentiles separately for men and women.

I estimate models including both individual and ¯rm-speci¯c characteristics. The results indicate large di®erences in the female immigrant-native wage gap between the top and the bottom of the wage distribution. However, the observed top/bottomdi®erences in the male immigrant-native wage gap is entirely explained by the di®erences in characteristics. Discrimination theory predicts that higherlevel immigrant professionals are exposed to unequal treatment to a greater extent than lower-level immigrant workers. I ¯nd no pattern to support this hypothesis. On the contrary immigrant women do better at the top than at the bottom of the wage distribution. The wage gap shows large di®erences between di®erent immigrant groups, but are remarkably robust across boom and recession.

Unemployment-Risk Di®erentials Between Immigrant and Native Workers in Sweden Studying unemployment risk during the period 1992 to 1995 for a sample of employees in Sweden in 1991, we ¯nd that immigrants from outside Europe run a risk of becoming unemployed that is twice as large as the corresponding risk for native workers. These unemployment-risk di®erentials remain unexplained even after controlling for employee characteristics, the wage-rate in 1991 and sorting of the workers into establishments with varying risks of unemployment. We report results indicating that although all groups enjoy higher job security with higher seniority, there are large di®erences in the unemployment-risk level for workers with the same seniority at the establishment level, despite the intentions of the Swedish Labor Protection Law (LAS). While three more years ofseniority compensates the disadvantage of being born outside Europe, the disadvantage of being born in the other Nordic or European countries is compensated by one or two more years of seniority respectively. This suggests that labor unions and employers deviate from the seniority rule in favor of native workers.

A Note on Rent-Sharing Among Immigrants and Natives. A large matched Swedish employer-employee data set including information on individual characteristics, wages, unemployment records and ¯rm ¯nancial balancesheet reports is used in this study . Individuals in high-pro¯t ¯rms have on average higher wages. It seems that both immigrants and natives ¯nd there way to these ¯rms. I investigate the existence of rent-sharing among immigrants and natives. The note reports new results indicating that immigrants and natives on average share rents to the same extent during both boom and recession periods. These conclusions are unchanged after controlling for a rich set of individual and ¯rm characteristics. Furthermore, estimating models of unobserved time invariant individual and ¯rm heterogeneity leads to the same conclusion. Although, immigrants and natives on average share rents to the same extent, well-educated immigrants share rents with theiremployers to a largerextent than well-educated natives. The pattern among low-educated workers is the opposite.

Place, publisher, year, edition, pages
Stockholm: Swedish Institute for Social Research, Stockholm University , 2002. , 31 p.
Series
Swedish Institute for Social Research, ISSN 0283-8222 ; 56
Keyword [en]
Immigrants pay, Sweden, Immigrants labour market
Keyword [sv]
Arbetslöshet, Sverige, Invandrare, Löneskillnader
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-142865Libris ID: 8717071ISBN: 91-7604-093-3 (print)OAI: oai:DiVA.org:su-142865DiVA: diva2:1094641
Public defence
2002-11-01, 10:00
Opponent
Note

Härtill 4 uppsatser

Available from: 2017-05-10 Created: 2017-05-10 Last updated: 2017-10-20Bibliographically approved

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