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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. Copyright 2003 by the International Association for Research in Income and Wealth.

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
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    References listed on IDEAS

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    1. Edward C. Prescott, 1986. "Theory ahead of business cycle measurement," Quarterly Review, Federal Reserve Bank of Minneapolis, pages 9-22.
    2. Backus, David K & Kehoe, Patrick J & Kydland, Finn E, 1992. "International Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 745-775, August.
    3. Prescott, Edward C., 1986. "Theory ahead of business-cycle measurement," Carnegie-Rochester Conference Series on Public Policy, Elsevier, pages 11-44.
    4. Cochrane, John H, 1988. "How Big Is the Random Walk in GNP?," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 893-920, October.
    5. Andrew Harvey (ed.), 1994. "Time Series," Books, Edward Elgar Publishing, volume 0, number 599, September.
    6. Dezhbakhsh, Hashem & Levy, Daniel, 1994. "Periodic properties of interpolated time series," Economics Letters, Elsevier, vol. 44(3), pages 221-228.
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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, pages 687-704.
    3. Hammarstedt, Mats, 2007. "Intergenerational mobility among three generations of immigrants in Sweden," CAFO Working Papers 2007:4, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
    4. 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.
    5. 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.
    6. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," Umeå Economic Studies 625, Umeå University, Department of Economics.
    7. 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, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
    8. 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 for the Study of Labor (IZA).
    9. Wahlberg, Roger, 2008. "Differences in Wage Distributions between Natives, Non-Refugees, and Refugees," Working Papers in Economics 316, University of Gothenburg, Department of Economics.

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