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Are unemployed immigrants more likely to be hired by high-growth firms? Evidence from matched employer-employee data

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Listed:
  • Daunfeldt, Sven-Olov

    (HUI Research)

  • Seerar Westerberg, Hans

    (HUI Research)

Abstract

The number of refugees in Europe has increased dramatically in recent years, and many countries are now facing great challenges to integrate these refugees into their societies. A small group of high-growth firms have at the same time attracted attention because they create most new jobs in any given point in time. Using matched employer-employee data from Statistics Sweden, we investigate whether these firms are also particularly important in providing job opportunities for immigrants who are unemployed. Our findings indicate that high-growth firms are less likely to recruit unemployed individuals, and that the odds of being recruited by a high-growth firm in general is not different for immigrants and native workers. Rapidly growing firms are thus selective in their hiring decisions and value recent work experience when recruiting employees. Policies that are focused towards high-growth firms might therefore not help immigrants who face difficulties in entering the labor market.

Suggested Citation

  • Daunfeldt, Sven-Olov & Seerar Westerberg, Hans, 2017. "Are unemployed immigrants more likely to be hired by high-growth firms? Evidence from matched employer-employee data," HUI Working Papers 128, HUI Research.
    • Handle: RePEc:hhs:huiwps:0128
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    References listed on IDEAS

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    More about this item

    Keywords

    Firm growth; Gazelles; High-growth firms; Immigration; Integration; Labor market; Matching models; Resource based theory; Interaction effects; Logit; Odds ratio;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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