Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2018:17: Limited time or secure residence? A study on the short-term effects of temporary and permanent residence permits on labour market participation*

Kristoffer Jutvik () and Darrel Robinson
Additional contact information
Kristoffer Jutvik: Department of Economics, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Darrel Robinson: Department of Economics, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: In this study we exploit a sudden policy change implemented in Sweden in order to evaluate the effects of permanent residency on labour market participation. In short, the policy change implied that Syrians were granted permanent instead of temporary residency as before the new regulations. Using detailed Swedish registry data, we examine the effect of the introduction of permanent residency on three measures of labour market inclusion in the short-term. We analyze the data through a simple difference-in-means as well as through comparison to groups unaffected by the policy in a difference-in-differences design and a synthetic control group approach. Our conclusions are twofold. On the one hand, we conclude that temporary residents that are subject to a relatively less-inclusive situation earn more and are unemployed less. However, at the same time, they are less likely to spend time in education than are those with permanent residency.

Keywords: Labour Market Inclusion; Asylum Policy; Sweden; Residence Permits

JEL-codes: J15; J24; O15

32 pages, January 7, 2019

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