Mahmood Arai and Roger Vilhelmsson
Additional contact information
Mahmood Arai: FIEF and Department of Economics, Stockholm University, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden
Roger Vilhelmsson: SOFI, Postal: Stockholm University, SE-106 91 Stockholm, Sweden
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
27 pages, August 15, 2001
Full text files
WP169.pdf
Questions (including download problems) about the papers in this series should be directed to Sune Karlsson ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:fiefwp:0169This page generated on 2024-09-13 22:14:33.