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Do attitudes towards immigrants matter?

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Author Info

  • Waisman, Gisela

    (Department of Economics, Copenhagen Business School)

  • Larsen, Birthe

    (Department of Economics, Copenhagen Business School)

Abstract

We exploit the regional variation in negative attitudes towards immigrants to Sweden in order to analyse what are the consequences of such attitudes have on immigrants welfare. A well educated immigrant from a non developed country who lives in a municipality with strong negative attitudes earns less than what she would earn if she lived in a municipality where natives are more positive. If attitudes changed from the average level to the most positive level, her wage would increase by 12%. This would reduce the wage gap to well-educated immigrants from developed countries by 70%. We interpret this eect as evidence of labour market discrimination. The same reduction in negative attitudes would increase the welfare of immigrants from Africa and Asia, through their wage and local amenities, by an equivalent to one third of their wage. The analogous amount for immigrants from South America and Eastern Europe is one fourth of their wage if they are well educated and one tenth otherwise.

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Bibliographic Info

Paper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number 11-2007.

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Length: 28 pages
Date of creation: 01 Jan 2007
Date of revision:
Handle: RePEc:hhs:cbsnow:2007_011

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Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Phone: 38 15 25 75
Fax: 38 15 34 99
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Web page: http://www.cbs.dk/departments/econ/
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References

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  1. David Card & Christian Dustmann & Ian Preston, 2005. "Understanding attitudes to immigration: The migration and minority module of the first European Social Survey," CReAM Discussion Paper Series 0503, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. George J. Borjas & Stephen G. Bronars, 1989. "Consumer Discrimination and Self-Employment," NBER Working Papers 2627, National Bureau of Economic Research, Inc.
  3. Per-Anders Edin & Peter Fredriksson & Olof �slund, 2003. "Ethnic Enclaves And The Economic Success Of Immigrants - Evidence From A Natural Experiment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 329-357, February.
  4. Graves, Philip E., 1979. "A life-cycle empirical analysis of migration and climate, by race," Journal of Urban Economics, Elsevier, vol. 6(2), pages 135-147, April.
  5. Arai, Mahmood & Vilhelmsson, Roger, 2001. "Immigrants' and Natives' Unemployment-risk: Productivity Differentials or Discrimination?," Working Paper Series 169, Trade Union Institute for Economic Research.
  6. Wallace E. Huffman & Tubagus Feridhanusetyawan, 2007. "Migration, Fixed Costs, and Location-Specific Amenities: A Hazard Analysis for a Panel of Males," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 368-382.
  7. Edin, Per-Anders & Fredriksson, Peter, 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Working Paper Series 2000:19, Uppsala University, Department of Economics.
  8. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
  9. Larsen, Birthe & Waisman, Gisela, 2007. "Who is hurt by discrimination?," Working Papers 12-2007, Copenhagen Business School, Department of Economics.
  10. Carlsson, Magnus & Rooth, Dan-Olof, 2006. "Evidence of Ethnic Discrimination in the Swedish Labor Market Using Experimental Data," IZA Discussion Papers 2281, Institute for the Study of Labor (IZA).
  11. Mueser Peter R. & Graves Philip E., 1995. "Examining the Role of Economic Opportunity and Amenities in Explaining Population Redistribution," Journal of Urban Economics, Elsevier, vol. 37(2), pages 176-200, March.
  12. Bevelander, Pieter, 1999. "Declining Employment Assimilation of Immigrants in Sweden: Observed or Unobserved Characteristics?," CEPR Discussion Papers 2132, C.E.P.R. Discussion Papers.
  13. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics.
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Cited by:
  1. Ott Toomet, 2011. "Learn English, Not the Local Language! Ethnic Russians in the Baltic States," American Economic Review, American Economic Association, vol. 101(3), pages 526-31, May.
  2. Carlsson, Magnus & Eriksson, Stefan, 2012. "Do Reported Attitudes towards Immigrants Predict Ethnic Discrimination?," Working Paper Series 2012:6, Uppsala University, Department of Economics.
  3. Parrotta, Pierpaolo & Pozzoli, Dario & Sala, Davide, 2014. "Ethnic Diversity and Firms' Export Behavior," Discussion Papers of Business and Economics 2/2014, Department of Business and Economics, University of Southern Denmark.
  4. Carlsson, Magnus & Rooth, Dan-Olof, 2011. "Employer Attitudes, the Marginal Employer and the Ethnic Wage Gap," IZA Discussion Papers 6227, Institute for the Study of Labor (IZA).

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