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The Ethnic Employment and Income Gap in Sweden: Is Skill or Labor Market Discrimination the Explanation?

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  • Martin Nordin
  • Dan‐Olof Rooth

Abstract

This study uses a cognitive test score, the Swedish Military Enlistment test taken at age 18, to identify whether the ethnic employment and income gap in Sweden is caused by a pre‐market skill gap and/or ethnic discrimination. The employment gap and income gap are estimated for males born in Sweden with different ethnic backgrounds: their parents were born in Sweden or in southern Europe or outside Europe. Controlling for the cognitive test score does not affect the ethnic employment gap, and for incomes the ethnic income gap almost disappears.

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  • Martin Nordin & Dan‐Olof Rooth, 2009. "The Ethnic Employment and Income Gap in Sweden: Is Skill or Labor Market Discrimination the Explanation?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(3), pages 487-510, September.
    • Handle: RePEc:bla:scandj:v:111:y:2009:i:3:p:487-510
    DOI: 10.1111/j.1467-9442.2009.01573.x
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    Cited by:

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    2. Martin Nordin & Dan-Olof Rooth, 2014. "Increasing Returns to Schooling by Ability? A Comparison between the USA and Sweden," Manchester School, University of Manchester, vol. 82, pages 1-20, December.
    3. Irastorza, Nahikari & Bevelander, Pieter, 2014. "Economic Integration of Intermarried Labour Migrants, Refugees and Family Migrants to Sweden: Premium or Selection?," IZA Discussion Papers 8065, Institute of Labor Economics (IZA).
    4. Katz, Katarina & Österberg, Torun, 2013. "Wages of childhood immigrants in Sweden – education, returns to education and overeducation," Working Paper Series 2013:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Dickerson, Andy & Ratcliffe, Anita & Rohenkohl, Bertha & Van de Sijpe, Nicolas, 2024. "Anticipated labour market discrimination and educational achievement," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 375-393.
    6. Åslund, Olof & Böhlmark, Anders & Skans, Oskar Nordström, 2015. "Childhood and family experiences and the social integration of young migrants," Labour Economics, Elsevier, vol. 35(C), pages 135-144.
    7. Wido Geis, 2010. "High Unemployment in Germany: Why do Foreigners Suffer Most?," ifo Working Paper Series 90, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    8. Nordin , Martin & Rooth, Dan-Olof, 2011. "Ability Heterogeneity in Intergenerational Mobility," Working Papers 2011:18, Lund University, Department of Economics.
    9. Paul Bisschop & Bas ter Weel & Jelle Zwetsloot, 2020. "Ethnic employment gaps of graduates in the Netherlands," Tinbergen Institute Discussion Papers 20-068/V, Tinbergen Institute.
    10. Paul Bisschop & Bas Weel & Jelle Zwetsloot, 2020. "Ethnic Employment Gaps of Graduates in the Netherlands," De Economist, Springer, vol. 168(4), pages 577-598, December.
    11. Pinar Aslan Akay & Nader Ahmadi, 2022. "The Work Environment of Immigrant Employees in Sweden—a Systematic Review," Journal of International Migration and Integration, Springer, vol. 23(4), pages 2235-2268, December.
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    13. Bisschop, Paul & ter Weel, Bas & Zwetsloot, Jelle, 2020. "Ethnic Employment Gaps of Graduates in the Netherlands," IZA Discussion Papers 13750, Institute of Labor Economics (IZA).
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