Scandinavian Working Papers in Economics

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

No 2018:20: Immigration history, entry jobs, and the labor market integration of immigrants

Laura Ansala (), Olof Åslund () and Matti Sarvim¨aki ()
Additional contact information
Laura Ansala: Aalto University School of Business and Pellervo Economic Research, Postal: Aalto University School of Business and Pellervo Economic Research
Olof Åslund: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Matti Sarvim¨aki: Aalto University School of Business and VATT Institute for Economic Research, Postal: Aalto University School of Business and VATT Institute for Economic Research

Abstract: We examine how immigrants enter the labor market and whether their integration process varies by host country's immigration history. We focus on two countries - Finland and Sweden - that have similar formal institutions, but differ vastly in their past immigration experience. Nevertheless, in both countries, immigrants tend to find their first jobs in low-paying establishments where the manager and colleagues often share their ethnic background. Time to entry and entry job characteristics vary widely by region of origin. Furthermore, entry job characteristics predict earnings dynamics and job stability. The patterns and associations are remarkably similar in Finland and Sweden. These findings suggest strong regularities in labor market integration and ethnic segregation that are independent of immigration history and ethnic diversity.

Keywords: Immigration; entry jobs; labor market integration; ethnic segregation

JEL-codes: J71

50 pages, November 26, 2018

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