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Citizenship, Co-ethnic Populations and Employment Probabilities of Immigrants in Sweden

Author

Listed:
  • Bevelander, Pieter

    () (Malmö University)

  • Pendakur, Ravi

    () (University of Ottawa)

Abstract

Over the last decades, Sweden has liberalized its citizenship policy by reducing the required number of years of residency to five for foreign citizens and only two for Nordic citizens. Dual citizenship has been allowed since 2001. During the same period, immigration patterns by country of birth changed substantially, with an increasing number of immigrants arriving from non-western countries. Furthermore, immigrants were settling in larger cities as opposed to smaller towns as was the case before. Interestingly, the employment integration of immigrants has declined gradually, and in 2006 the employment rate for foreign-born individuals is substantially lower compared to the native-born. The aim of this paper is to explore the link between citizenship and employment probabilities for immigrants in Sweden, controlling for a range of demographic, human capital, and municipal characteristics such as city and co-ethnic population size. The information we employ for this analysis consists of register data on the whole population of Sweden held by Statistics Sweden for the year 2006. The basic register, STATIV, includes demographic, socio-economic and immigrant specific information. In this paper we used instrumental variable regression to examine the "clean" impact of citizenship acquisition and the size of the co-immigrant population on the probability of being employed. In contrast to Scott (2008), we find that citizenship acquisition has a positive impact for a number of immigrant groups. This is particularly the case for non- EU/non-North American immigrants. In terms of intake class, refugees appear to experience substantial gains from citizenship acquisition (this is not, however, the case for immigrants entering as family class). We find that the impact of the co-immigrant population is particularly important for immigrants from Asia and Africa. These are also the countries that have the lowest employment rate.

Suggested Citation

  • Bevelander, Pieter & Pendakur, Ravi, 2009. "Citizenship, Co-ethnic Populations and Employment Probabilities of Immigrants in Sweden," IZA Discussion Papers 4495, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4495
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    References listed on IDEAS

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    1. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    2. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
    3. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
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    Citations

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    Cited by:

    1. Vincent Corluy & Ive Marx & Gerlinde Verbist, 2011. "Employment chances and changes of immigrants in Belgium: the impact of citizenship," Working Papers 1107, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Dilip Ratha & Sanket Mohapatra & Caglar Ozden & Sonia Plaza & William Shaw & Abebe Shimeles, 2011. "Leveraging Migration for Africa : Remittances, Skills, and Investments
      [Optimisation du phénomène migratoire pour l’Afrique : Envois de fonds, compétences et investissements]
      ," World Bank Publications, The World Bank, number 2300, April.

    More about this item

    Keywords

    citizenship; naturalization; immigration; ethnicity;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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