Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2003:7: Do when and where matter? Initial labor market conditions and immigrant earnings

Olof ├ůslund () and Dan-Olof Rooth ()
Additional contact information
Olof ├ůslund: IFAU - Institute for Labour Market Policy Evaluation, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Dan-Olof Rooth: Kalmar university, Postal: SE-391 82 Kalmar, Sweden

Abstract: This paper investigates the long-term effects on immigrant earnings and employment from labor market conditions encountered upon arrival. We find substantial effects both of the state of the national labor market and of local unemployment rates. Comparing refugees entering Sweden in a severe and unexpected recession to refugees arriving in a preceding economic boom, we attempt to handle the issue of selective migration. The analysis of effects at the local level exploits a governmental refugee settlement policy to get exogenous variation in local labor market conditions.

Keywords: Immigration; earnings: labor market conditions

JEL-codes: F22; J15; J61; R23

39 pages, March 18, 2003

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