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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. repec:ags:stataj:241328 is not listed on IDEAS
    2. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    3. Joan Llull, 2018. "The Effect of Immigration on Wages: Exploiting Exogenous Variation at the National Level," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 608-662.
    4. Reinhard Schunck & Francisco Perales, 2017. "Within- and between-cluster effects in generalized linear mixed models: A discussion of approaches and the xthybrid command," Stata Journal, StataCorp LP, vol. 17(1), pages 89-115, March.
    5. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
    6. Fane Groes & Philipp Kircher & Iourii Manovskii, 2015. "The U-Shapes of Occupational Mobility," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 659-692.
    7. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    8. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, Elsevier.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    refugee immigration; income gap; employer-employee data; Blinder–Oaxaca decomposition;

    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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