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Refugee immigrants, occupational sorting and wage gaps

Author

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  • Baum, Christopher F

    (Boston College, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS))

  • Lööf, Hans

    (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology)

  • Stephan, Andreas

    (Jönköping University, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS))

Abstract

This paper analyzes wage income differences between native born workers and refugee immigrants in Sweden within occupations delineated in accordance with the augmented canonical model of occupational assignment. The identification strategy is based on a control group of matched native born persons with similar characteristics as the refugees and by using panel data methods capturing unobserved heterogeneity. The econometric results from a Swedish employer-employee panel data set document a narrowed wage gap over time, showing that the remaining difference can be explained to a large extent by the sorting into different types of occupations. Based on an Blinder–Oaxaca decomposition, we find a persistent wage gap in cognitive non-routine occupations but also, surprisingly, task categories where refugees have higher earning than natives.

Suggested Citation

  • Baum, Christopher F & Lööf, Hans & Stephan, Andreas, 2018. "Refugee immigrants, occupational sorting and wage gaps," Working Paper Series in Economics and Institutions of Innovation 473, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0473
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    References listed on IDEAS

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    1. Shintaro Yamaguchi, 2012. "Tasks and Heterogeneous Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 1-53.
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    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    More about this item

    Keywords

    refugee immigration; income gap; employer-employee data; Blinder–Oaxaca decomposition;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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