Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1343: International Trade and Labor Market Integration of Immigrants

Magnus Lodefalk (), Fredrik Sjöholm () and Aili Tang
Additional contact information
Magnus Lodefalk: Örebro University, Postal: Global Labor Organization, and Ratio Institute
Fredrik Sjöholm: Research Institute of Industrial Economics (IFN), Postal: Box 55665, SE-102 15 Stockholm, Sweden
Aili Tang: Örebro University, Postal: and Ratio Institute

Abstract: We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks needed to overcome information frictions in trade. Using granular longitudinal matched employer-employee data and an instrumental variable approach, we estimate the causal effects of a firm’s bilateral trade on employment and wages of immigrants from that country. We find a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

Keywords: Export; Import; Immigrants; Employment; Wages

JEL-codes: F16; F22; J21; J31; J61

45 pages, June 17, 2020

Full text files 

wp1343.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:iuiwop:1343This page generated on 2024-09-13 22:15:51.