Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 133: Which firms provide jobs for unemployed non-Western immigrants?

Sven-Olov Daunfeldt (), Dan Johansson () and Hans Seerar-Westerberg ()
Additional contact information
Sven-Olov Daunfeldt: HUI Research, Postal: Stockholm, Sweden and Dalarna University, Falun Sweden
Dan Johansson: HUI Research, Postal: Stockholm, Sweden and Örebro University, Örebro Sweden,
Hans Seerar-Westerberg: HUI Research, Postal: Stockholm, Sweden and Örebro University, Örebro Sweden

Abstract: Although the refugee immigration crisis is one of the major socioeconomic challenges in Europe, we still lack knowledge on what characterizes firms that provide jobs for unemployed immigrants. We provide an answer by investigating firms that recruit unemployed non- Western immigrants using matched employer-employee data from Statistics Sweden. We find large industry differences; firms active in the service sectors, such as the hospitality, transport, and healthcare industries, are much more likely to hire unemployed non-Western immigrants than firms in high-tech and manufacturing industries. In addition, after controlling for educational attainment and industry of occupation, firms with at least one non-Western immigrant manager hire more than four times as many unemployed non-Western immigrants than firms without any non-Western immigrant managers.

Keywords: Immigration; labor market; unemployment

JEL-codes: D24; L25; L26

26 pages, First version: May 22, 2018. Revised: January 1, 2018.

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02642069.2018.1534961?journalCode=fsij20 text file Full text

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