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Income from Work Among Immigrants in Sweden

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  • Mats Hammarstedt

Abstract

This paper uses a two‐step Heckman approach to investigate to what extent there are differences in income from work between immigrants and natives in Sweden. Contrary to previous studies this study takes the selection effect, i.e. the probability of having an income from work, into account when calculating the effect on income from work of a change in any of the explanatory variables. Our study shows that when the selection effect is taken into account, the differences in income from work between immigrants and natives are smaller than when the selection effect is not considered. We find that immigrants have a lower income from work than the native population when we control for variables such as schooling, experience, civil status and region of residence. Furthermore, immigrant cohorts with a recent year of immigration have a considerably lower income from work than earlier immigrant cohorts.

Suggested Citation

  • Mats Hammarstedt, 2003. "Income from Work Among Immigrants in Sweden," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(2), pages 185-203, June.
    • Handle: RePEc:bla:revinw:v:49:y:2003:i:2:p:185-203
    DOI: 10.1111/1475-4991.00082
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    Cited by:

    1. Ali M. Ahmed & Lina Andersson & Mats Hammarstedt, 2010. "Can Discrimination in the Housing Market Be Reduced by Increasing the Information about the Applicants?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 79-90.
    2. Bird, Miriam & Wennberg, Karl, 2016. "Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(6), pages 687-704.
    3. Emma Neuman, 2018. "Source country culture and labor market assimilation of immigrant women in Sweden: evidence from longitudinal data," Review of Economics of the Household, Springer, vol. 16(3), pages 585-627, September.
    4. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    5. Jutvik, Kristoffer & Robinson, Darrel, 2019. "Limited time or secure residence? A study on the short-term effects of temporary and permanent residence permits on labour market participation," Working Paper Series 2018:17, Uppsala University, Department of Economics.
    6. Lars Behrenz & Mats Hammarstedt & Jonas Månsson, 2007. "Second-Generation Immigrants in the Swedish Labour Market," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 157-174.
    7. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    8. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," Umeå Economic Studies 625, Umeå University, Department of Economics.
    9. Lina Andersson & Mats Hammarstedt & Shakir Hussain & Ghazi Shukur, 2013. "Ethnic origin, local labour markets and self-employment in Sweden: a multilevel approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 885-910, June.
    10. Månsson, Jonas & Olsson, Mikael, 2010. "Mobility sans integration? An analysis of labor market attainment in Sweden among its post-war immigrants from Estonia, Latvia, Lithuania and Poland," CAFO Working Papers 2010:6, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    11. Akay, Alpaslan, 2009. "Dynamics of the Employment Assimilation of First-Generation Immigrant Men in Sweden: Comparing Dynamic and Static Assimilation Models with Longitudinal Data," IZA Discussion Papers 4655, Institute of Labor Economics (IZA).
    12. Pekkala, Sari, 2005. "Economic Impacts of Immigration: A Survey," Discussion Papers 362, VATT Institute for Economic Research.
    13. Wahlberg, Roger, 2008. "Differences in Wage Distributions between Natives, Non-Refugees, and Refugees," Working Papers in Economics 316, University of Gothenburg, Department of Economics.
    14. Mats Hammarstedt, 2009. "Intergenerational Mobility and the Earnings Position of First‐, Second‐, and Third‐Generation Immigrants," Kyklos, Wiley Blackwell, vol. 62(2), pages 275-292, April.

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