Scandinavian Working Papers in Economics

Arbetsrapport,
Institute for Futures Studies

No 2010:6: Does Immigration Hurt Low Income Workers?: Immigration and Real Wage Income below the 50th Percentile, Sweden 1993-2003

Martin Korpi () and Ayse Abbasoglu Özgören ()
Additional contact information
Martin Korpi: Institute for Futures Studies, Postal: Institute for Futures Studies, Box 591, SE-101 31 Stockholm, Sweden
Ayse Abbasoglu Özgören: Institute for Futures Studies, Postal: Institute for Futures Studies, Box 591, SE-101 31 Stockholm, Sweden

Abstract:

This paper addresses potential effects of immigration on wage income of predominantly low income Swedish born workers. Using unique individual full population panel data for two time-periods, 1993- 1999 and 1997-2003, we estimate two fixed effect models controlling for both individual and local labor market characteristics as well as individual and regional fixed effects. The models are tested for a range of population sub-groups, the compulsory and upper secondary educated and workers within certain shares of the local income distribution (using different below median percentile levels as population cut-off points). The estimates show mainly a positive relationship between increasing shares of foreign born and wage income of Swedish born workers.

Keywords: International migration; Local labor markets; Wage levels; labour supply

JEL-codes: F22; J22; J31; J61

26 pages, July 1, 2010

Price: 25 SEK

Note: ISSN: 1652-120X ISBN: 978-91-85619-66-5

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