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IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We examine the wage returns to host-country work experience among immigrants by reconstructing full employment histories using Swedish pension records and longitudinal matched employer–employee data. Our findings show that: (i) returns to experience are sizable and concave, consistent with standard models, and vary by gender, education, and region of origin; (ii) returns for immigrant workers have risen since the early 2000s; (iii) returns differ across industries and occupations, with experience in high-skill and high-wage workplaces being especially valuable; (iv) returns are generally greater for natives than for immigrants; and (v) potential experience serves as a reasonable proxy at lower experience levels but tends to overstate returns for more experienced workers.

Keywords: experience; wages; immigrants

JEL-codes: J31; J61

Language: English

41 pages, March 9, 2026

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