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Wages and Immigrant Occupational Composition in Sweden

Author

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  • Hansen, Jörgen

    (Concordia University)

  • Wahlberg, Roger

    (University of Gothenburg)

  • Faisal, Sharif

    (Concordia University)

Abstract

This paper examines the relationship between immigrant occupational composition and wages in Sweden. Effects of changes in proportion of immigrant workers in different occupations on the wage levels of both natives and immigrants are estimated. Our results suggest that increases in immigrant density have only small effects on wages and that the negative relationship between wages and the proportion of immigrant workers in an occupation, observed in data, is almost entirely accounted for by measured and unmeasured worker skills. These results suggest that wage differences across occupations with different densities of immigrants are mainly due to quality sorting and to a lesser extent due to the existence of discrimination.

Suggested Citation

  • Hansen, Jörgen & Wahlberg, Roger & Faisal, Sharif, 2010. "Wages and Immigrant Occupational Composition in Sweden," IZA Discussion Papers 4823, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4823
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    References listed on IDEAS

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    1. David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
    2. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
    3. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 21-37, January.
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    Cited by:

    1. Alfredo A. Romero, 2014. "Where do Moderation Terms Come from in Binary Choice Models?," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 6(1), pages 57-68, March.
    2. Polyakova, Evgeniya & Smirnykh, Larisa, 2016. "The earning differential between natives and individuals with immigrant background in Russia: The role of ethnicity," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 43, pages 52-72.
    3. Giulio Bosio & Chiara Noè, 2011. "Higher Education Expansion, Human Capital Externalities and Wages: Italian Evidence within Occupation," Working Papers 39, AlmaLaurea Inter-University Consortium.
    4. Bossler, Mario, 2014. "Sorting within and across establishments : the immigrant-native wage differential in Germany," IAB-Discussion Paper 201410, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Boris Heizmann & Anne Busch-Heizmann & Elke Holst, 2017. "Immigrant Occupational Composition and the Earnings of Immigrants and Natives in Germany: Sorting or Devaluation?," International Migration Review, Wiley Blackwell, vol. 51(2), pages 475-505, June.

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    More about this item

    Keywords

    immigrants; refugees; occupational composition; quality sorting; wages;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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