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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 ()

Abstract:

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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