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Unemployment risk among newly hired immigrants

Author

Listed:
  • Daunfeldt, Sven-Olov

    (HUI Research)

  • Wennberg, Elina

    (HUI Research)

Abstract

Unemployment among immigrants is one of the most pressing issues facing European policy makers. Most of the research on unemployment among immigrants has been directed towards those who are low-educated or long-term unemployed, while those who are closer to establishing themselves on the labor market have received surprisingly little attention. Our aim is to address this shortcoming by investigating differences in unemployment risk between newly hired immigrants and natives using register data from Statistics Sweden. We find that unemployed immigrants are more likely to re-enter unemployment than natives in the same position, even after controlling for a wide range of individual- and firm-level factors. The difference in unemployment risk between immigrants and natives is significantly reduced if immigrants are hired by a firm in the hospitality sector, a young or small firm, or a firm with at least one manager born in a nonwestern country. Therefore, it appears that systematic differences exist in the risk of reentering unemployment between immigrants and native workers and that these differences are related to the workplace and industry in which they are hired.

Suggested Citation

  • Daunfeldt, Sven-Olov & Wennberg, Elina, 2017. "Unemployment risk among newly hired immigrants," HUI Working Papers 126, HUI Research, revised 18 May 2018.
    • Handle: RePEc:hhs:huiwps:0126
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    Citations

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    Cited by:

    1. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Coethnic Hiring in New US Ventures," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 86-127.
    2. Magnus Helgesson & Maria Brendler-Lindqvist & Bo Johansson & Tobias Nordquist & Martin Tondel & Magnus Svartengren, 2022. "Sustainable Earnings among Immigrants, and the Role of Health Status for Self-Sufficiency: A 10-Year Follow-Up Study of Labour Immigrants and Refugees to Sweden 2000–2006," IJERPH, MDPI, vol. 20(1), pages 1-15, December.

    More about this item

    Keywords

    labor market; diversity; integration; immigrant; unemployment; unemployment days; negative binomial model;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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