Scandinavian Working Papers in Economics
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Institutet för Framtidsstudier - Institute for Futures Studies Arbetsrapport, Institutet för Framtidsstudier - Institute for Futures Studies

No 2010:6:
Does Immigration Hurt Low Income Workers?: Immigration and Real Wage Income below the 50th Percentile, Sweden 1993-2003

Martin Korpi () and Ayse Abbasoglu Özgören ()


This paper addresses potential effects of immigration on wage income of predominantly low income Swedish born workers. Using unique individual full population panel data for two time-periods, 1993- 1999 and 1997-2003, we estimate two fixed effect models controlling for both individual and local labor market characteristics as well as individual and regional fixed effects. The models are tested for a range of population sub-groups, the compulsory and upper secondary educated and workers within certain shares of the local income distribution (using different below median percentile levels as population cut-off points). The estimates show mainly a positive relationship between increasing shares of foreign born and wage income of Swedish born workers.

Keywords: International migration; Local labor markets; Wage levels; labour supply; (follow links to similar papers)

JEL-Codes: F22; J22; J31; J61; (follow links to similar papers)

26 pages, July 1, 2010

ISSN: 1652-120X ISBN: 978-91-85619-66-5

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