Scandinavian Working Papers in Economics

SULCIS Working Papers,
Stockholm University, Linnaeus Center for Integration Studies - SULCIS

No 2008:4: Who is Hurt by Discimination?

Gisela Waisman () and Birthe Larsen ()
Additional contact information
Gisela Waisman: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden
Birthe Larsen: Copenhagen Business School, Department of Economics

Abstract: The effects of discrimination of immigrants on the labour market are studied within a search and wage-bargaining setting including a risk of losing skills during the experience of unemployment. The negative effects of discrimination in the form of higher unemployment and lower wages spread to all workers, immigrants and natives, in all sectors of the economy. The effect is stronger for immigrants, but natives also suffer. An increase in the share of immigrants in the economy exacerbates the problems of discrimination.

Keywords: discrimination; unemployment; search; matching; wages

JEL-codes: J15; J31; J61; J64; J71

33 pages, October 1, 2008

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SULCISWP2008_4.pdf PDF-file

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