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The contribution of foreign-born STEM workers to the knowledge-intensive economy: Evidence from Sweden

Author

Listed:
  • Christopher F. Baum

    (Boston College
    DIW Berlin
    CESIS, KTH Royal Institute of Technology)

  • Hans Lööf

    (CESIS, KTH Royal Institute of Technology)

  • Andreas Stephan

    (Linnaeus University
    DIW Berlin)

Abstract

This paper investigates how foreign-born STEM workers contribute to the supply of skills in a knowledge-intensive economy. Based on Swedish employer-employee data for the period 2011–2015, we first demonstrate that both economic and refugee-immigrants are less likely to be employed in most but not all STEM-occupations compared to matched native worker. Using wage as a proxy for performance, we then consider employed work- ers and find that both categories of immigrants have higher average wages than comparable natives in STEM-core occupations, economic immigrants have higher average wages in STEM- professional occupations, and refugee- immigrants have higher average wages in the other STEM occupations. These wage differences tend to diminish but not disappear along the wage distribution. The only statistically significant reverse wage gap is found in the upper part of the wage distribution among STEM-professionals, where native workers earn more than workers with a refugee background.

Suggested Citation

  • Christopher F. Baum & Hans Lööf & Andreas Stephan, 2018. "The contribution of foreign-born STEM workers to the knowledge-intensive economy: Evidence from Sweden," Boston College Working Papers in Economics 962, Boston College Department of Economics, revised 11 Feb 2024.
    • Handle: RePEc:boc:bocoec:962
    Note: Previously circulated as "Economic impact of STEM immigrant workers"
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    STEM; migration; employment; wages; coarsened exact matching; panel probit;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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