Employment Convergence of Immigrants and Natives in Sweden

This study examines the employment convergence patterns of various immigrant groups to natives in Sweden. Using data with annual information (1990-1997) on more than 200,000 individuals, the probability of being regularly employed is estimated, by gender and region of birth, for immigrants with varying duration of residence in Sweden. The results indicate that employment convergence occurs primarily during the first 10 to 15 years after immigration and that significant differences to natives remain thereafter. East and Non European immigrants indicate 55 ­ 70 percent lower chances of being regularly employed, compared to natives, after twenty years in Sweden.Immigration; Employment; Discrimination; Gender

Inter- and Intra-Marriage Premiums Revisited: It’s probably who you are, not who you marry!

For immigrants, intermarriage with natives is assumed to have an assimilating role due to the enhancement of local human capital such a union creates in the form of improved knowledge about host country institutions, language and customs as well as access to native spouses’ networks and contacts. However, marriage choice is endogenous, unobserved factors influence who we marry and our labor market outcomes. This study uses panel data on immigrants and their spouses in Sweden to estimate marriage premiums taking into account individual heterogeneity. This is done for three types of marriages; intermarriage to natives and intra-marriage with immigrants from home countries or other (non-Swedish) countries. A staggered fixed effects model is estimated separately for each marriage type to further disentangle a causal effect of intermarriage (intra-marriage) on annual income from any remaining positive selection effects into respective marriage type. Results from fixed effects estimation indicate that all types of marriage (with one exception) yield positive marriage premiums of similar magnitude. Significant pre-marriage income growth and a lack of postmarriage income growth for those that marry natives suggest that intermarriage premiums are largely due to selection.Intermarriage; Intra-marriage; Income; Immigration; Assimilation; Gender

Pure vs. Mutual Sick Insurance Societies. Evidence from Swedish Historical Data

Using data from voluntary Swedish sick insurance societies 1902-1910, this paper analyzes the coexistence of pure and mutual insurance societies where pure societies are characterized by charging ex ante premiums only while mutuals in addition charge ex post assessments. Mutual insurance societies are found, on average, to be larger and to offer longer insurance coverage duration. Pure insurance societies have, on average, higher insurance coverage per day, greater mean levels of moral hazard controls, a higher mean number of policy categories and are on average, older.friendly societies; sick insurance; health insurance

Gender Differences in Rent Sharing and its Implications for the Gender Wage Gap

Based on a large matched employer-employee data set for Sweden, this study analyses gender differences in rent sharing. Results indicate a general pattern of significantly smaller remuneration from firm profits for women. Gender differences in rent sharing, however, explain less than two percent of gender wage differentials. This is not unexpected, as gender differences are found not in the mean profit levels of employing firms, but in remuneration from firm profit.Wages; Profits; Rent sharing; Gender

Inter- and Intra-Marriage Premiums Revisited: It's Probably Who You Are, Not Who You Marry!

For immigrants, intermarriage with natives is assumed to have an assimilating role due to the enhancement of local human capital such a union creates in the form of improved knowledge about host country institutions, language and customs as well as access to native spouses' networks and contacts. However, marriage choice is endogenous, unobserved factors influence who we marry and our labor market outcomes. This study uses panel data on immigrants and their spouses in Sweden to estimate marriage premiums taking into account individual heterogeneity. This is done for three types of marriages; intermarriage to natives and intra-marriage with immigrants from home countries or other (non-Swedish) countries. A staggered fixed effects model is estimated separately for each marriage type to further disentangle a causal effect of intermarriage (intra-marriage) on annual income from any remaining positive selection effects into respective marriage type. Results from fixed effects estimation indicate that all types of marriage (with one exception) yield positive marriage premiums of similar magnitude. Significant pre-marriage income growth and a lack of post-marriage income growth for those that marry natives suggest that intermarriage premiums are largely due to selection.intermarriage, intra-marriage, income, immigration, assimilation, gender

How Long Does it Take to Integrate? Employment Convergence of Immigrants and Natives in Sweden.

This study examines employment convergence between immigrants and natives, by gender and region of origin, using data with annual information (1990-2000) on more than 200,000 individuals of which over 19,000 were born abroad. Duration of residence is found to have a significant effect on employment chances up to and including the first 25 years in Sweden but with greater explanatory power for East- and non-European immigrants. Assuming homogeneous human capital and time effects, immigrant groups with over twenty years residency continue to show a significant employment gap to natives. No notable gender differences in employment convergence patterns are found.Immigration; Employment; Discrimination; Gender

Acculturation Identity and Labor Market Outcomes

This paper explores the identity formation of a cohort of students with immigrant backgrounds in Sweden and the consequences of identity for subsequent labor market outcomes. Unique for this study is that identity is defined according to a two-dimensional acculturation framework based on both strength of identity to the (ethnic) minority and to the (Swedish) majority culture. Results indicate that what matters for labor market outcomes is strength of identification with the majority culture regardless of strength of (ethnic) minority identity. Labor market outcomes vary little between the assimilated and the integrated who have in common a strong majority identity but varying minority identity. Correlations between identity and labor market outcomes are however, an entirely male phenomenon.Ethnic Identity; Acculturation; Ethnic minorities; Employment; Income

The Emigration of Immigrants, Return vs. Onward Migration: Evidence from Sweden

Using data on registered emigration from Sweden from 1991-2000, this study analyzes emigration propensities for natives and immigrants delineating among immigrant emigrants between return and onward migration. Return migration is defined as migration back to source countries and onward migration as emigration to third country destinations. Onward migration constitutes an increasing proportion of emigration from Sweden and is the more common form of emigration among immigrants from Africa and Asia. Results indicate that emigrants in general are positively selected in terms of upper education, a result driven by the positive association between upper education and emigration among onward migrants. Predicted age-income profiles show that although emigrants in general have higher adjusted mean income levels, up to the age of 35-40, than non-emigrants, onward migrants have lower predicted income levels across the age distribution due to this groups relatively low employment levels in Sweden.Emigration; Return Migration; Onward Migration; Immigrant/Emigrant Earnings

TIPping the Scales towards Greater Employment Chances? Evaluation of a Trial Introduction Program (TIP) for Newly-Arrived Immigrants Based on Random Program Assignment

A Trial Introduction Program (TIP) for newly-arrived immigrants to Sweden was implemented from October 2006 to June 2008 in order to meet the main criticisms directed at existing introduction programs. Two primary innovations were introduced, flexible language instruction parallel with other labor market activities at the Public Employment Service (PES) and intensive counseling and coaching by PES caseworkers with considerably reduced caseloads. Within participating municipalities, newly-arrived immigrants were randomly assigned into TIP (treatment) or regular introduction programs (control). Results indicate significant treatment effects on the probability of attaining regular employment as well as the probability of entering intermediate PES training programs. Hazard rates into PES training programs were also significantly higher for participants in TIP in comparison to participants in regular introduction programs.labor market policy evaluation, integration, introduction programs, experiment

TIPping the Scales towards Greater Employment Chances? Evaluation of a Trial Introduction Program (TIP) for Newly-Arrived Immigrants based on Random Program Assignment

A Trial Introduction Program (TIP) for newly-arrived immigrants to Sweden was implemented from October 2006 to June 2008 in order to meet the main criticisms directed at existing introduction programs. Two primary innovations were introduced, flexible language instruction parallel with other labor market activities at the Public Employment Service (PES) and intensive counseling and coaching by PES caseworkers with considerably reduced caseloads. Within participating municipalities, newly-arrived immigrants were randomly assigned into TIP (treatment) or regular introduction programs (control). Results indicate significant treatment effects on the probability of attaining regular employment as well as the probability of entering intermediate PES training programs. Hazard rates into PES training programs were also significantly higher for participants in TIP in comparison to participants in regular introduction programs.Labor Market Policy Evaluation; Integration; Introduction Programs; Experiment