Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1540: Income and Employment for Immigrants and Immigrant-Dense Neighbourhoods in Sweden 1998–2022

Martin Nordin () and Andreas Bergh ()
Additional contact information
Martin Nordin: Agrifood Economics Centre and Department of Economics, Lund University
Andreas Bergh: Department of Economics, Lund University, Postal: and Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Abstract: This paper examines income and employment outcomes for immigrants in Sweden’s most immigrant-dense neighbourhoods between 1998 and 2022. While relative employment among immigrants has improved, relative incomes in these neighbourhoods have stagnated or declined. The most plausible explanation for the persisting income gap and the shrinking employment gap between immigrant-dense and other neighbourhoods is that immigrants in immigrant-dense neighbourhoods are increasingly channelled into non-standard employment. If we look at all immigrants, regardless of where they live, gaps between immigrants and natives are shrinking, both in terms of income and employment. Reconciling these patterns, we show that individuals in immigrant-dense neighbourhoods who enter employment are more likely to relocate to other areas.

Keywords: Immigrant integration; Labour market outcomes; Non-standard employment; Immigrant-dense neighbourhoods

JEL-codes: J61; R23

Language: English

28 pages, November 5, 2025

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