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Unemployment and Relative Earnings of Immigrants


  • Longva, P.
  • Raaum, O.


The regional unemployment elasticity of annual earnings for Non-OECD immigrants is found to be more than three times larger than for natives, using micro data covering all immigrants in Norway in 1990 and a random sample of natives. The decline in relative earnings of Non-OECD immigrants from 1980 to 1990 can largely be explained by the stronger impact of rising unemployment on immigrant earnings. These results highlight the importance of controlling for different period effects caused by fluctuating unemployment in panel studies of earnings assimilation among immigrants.

Suggested Citation

  • Longva, P. & Raaum, O., 1998. "Unemployment and Relative Earnings of Immigrants," Memorandum 02/1998, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:1998_002

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    References listed on IDEAS

    1. Dewatripont, Mathias, 1987. "The role of indifference in sequential models of spatial competition : An example," Economics Letters, Elsevier, vol. 23(4), pages 323-328.
    2. Edward C. Prescott & Michael Visscher, 1977. "Sequential Location among Firms with Foresight," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 378-393, Autumn.
    3. Spagat, Michael, 1992. "Validated equilibrium and sequential spatial competition games," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 49-57, August.
    4. Nilssen, T. & Sorgard, L., 1996. "Strategic Location with Asymmetric Transportation Costs," Memorandum 35/1996, Oslo University, Department of Economics.
    5. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March.
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    Cited by:

    1. AlbÆk, Karsten & Asplund, Rita & Blomskog, Stig & Barth, Erling & GuÐmundsson, Björn Runar & Karlsson, Vifill & Madsen, Erik, 2002. "Dimensions of the Wage-dimensions Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Discussion Papers 698, The Research Institute of the Finnish Economy.
    2. Pål Longva & Oddbjørn Raaum, 2003. "Earnings assimilation of immigrants in Norway – A reappraisal," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(1), pages 177-193, February.
    3. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Earnings Assimilation of Immigrants in Norway," Memorandum 19/2002, Oslo University, Department of Economics.
    4. Albaek, K. & Asplund, R. & Blomskog, S. & Barth, E. & Guomundsson,B.R. & Karlsson, V. & Madsen, E.S., 1999. "Domensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Papers 99-24, Carleton - School of Public Administration.

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials


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