Title: Labour market integration of refugee-immigrants in Sweden
Authors: Christopher Baum - Boston College (United States)
Hans Loof - Royal Institute of Technology (Sweden) [presenting]
Andreas Stephan - Jonkoping University (Sweden)
Cindy Alder - Lund University (Sweden)
Abstract: Employment probabilities and earnings differentials of refugee immigrants and natives in Sweden are assessed by following their labour market career over the period 1994-2014. Our focus is labour market integration of refugees arriving in Sweden in 1993 and 1994, mainly Balkan refugees. We study the 19541976 birth cohort, as these individuals are of working age (minimum 18 years old and maximum 60 years old) during the whole observed period. Our study contains the entire population of the target groups. Using employer-employee data, we are able to follow unique individuals accounting for time varying characteristics such as education, occupation, entrepreneurship, inventor engagement, place of living, firm size, firm productivity, firm innovation and industry. The existence of permanent long-run employment and wage gaps between refugees and natives is hypothesized. The possible gaps are tested to be explained by some systematic discrimination on the labour market, differences between refugees and natives regarding geographical mobility and occupation mobility, or to reflect differences in ability, all else equal. A large number of controls is used and a static and dynamic panel data model accounting for selectivity, endogeneity and state dependency is applied.