Working Paper Series, FIEF - Trade Union Institute for Economic Research
Mahmood Arai and Roger Vilhelmsson
Immigrants' and Natives' Unemployment-risk: Productivity Differentials or Discrimination?
Abstract: Studying the unemployment risk during 1992 to 1995 for a
sample of employees in 1991, we find that immigrants from the non-European
countries run a risk of unemployment that is twice the corresponding risk
for the native workers. There exist substantial unemployment-risk
differentials taking into account employees’ demographic and human capital
characteristics, the wage-rate in 1991 and systematic sorting of workers
across establishments associated with varying unemployment risks.
Exaggerating beyond all reasonable limits, the ability differentials
(measured in school grades and IQ-tests) between immigrants and natives
fails to explain the differences between immigrants and natives in
unemployment risks. Our simulations indicate that the observed
unemployment-risk differentials between native and non-European workers
correspond to ability differentials that are at least as large as the whole
range of IQ-scores. Our conclusion is that discriminatory behavior and
stereotype beliefs must be involved. Furthermore, we report results
indicating that the existing income-gap between immigrants and natives in
Sweden is almost entirely due to unequal employment opportunities.
Keywords: Immigration; Unemployment; Discrimination; (follow links to similar papers)
JEL-Codes: J15; J61; J64; J71; (follow links to similar papers)
27 pages, August 15, 2001
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- This paper is published as:
Arai, Mahmood and Roger Vilhelmsson, (2004), 'Unemployment-Risk Differentials Between Immigrant and Native Workers in Sweden', Industrial Relations, Vol. 43, pages 690-99
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