Working Paper Series, Department of Economics, Copenhagen Business School
Gisela Waisman and Birthe Larsen
Do attitudes towards immigrants matter?
Abstract: We exploit the regional variation in negative attitudes
towards immigrants to Sweden in order to analyse what are the consequences
of such attitudes have on immigrants welfare. A well educated immigrant
from a non developed country who lives in a municipality with strong
negative attitudes earns less than what she would earn if she lived in a
municipality where natives are more positive. If attitudes changed from the
average level to the most positive level, her wage would increase by 12%.
This would reduce the wage gap to well-educated immigrants from developed
countries by 70%. We interpret this eect as evidence of labour market
discrimination. The same reduction in negative attitudes would increase the
welfare of immigrants from Africa and Asia, through their wage and local
amenities, by an equivalent to one third of their wage. The analogous
amount for immigrants from South America and Eastern Europe is one fourth
of their wage if they are well educated and one tenth otherwise.
Keywords: na; (follow links to similar papers)
JEL-Codes: G10; (follow links to similar papers)
28 pages, January 1, 2007
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