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International Trade and Labour Market Integration of Immigrants
Örebro University, Örebro University School of Business. Ratio Institute, Stockholm, Sweden; Global Labor Organization, Essen, Germany. (EFGI)ORCID iD: 0000-0003-0149-9598
Lund University, Lund, Sweden; Research Institute for Industrial Economics, Stockholm, Sweden.
Örebro University, Örebro University School of Business. (EFGI)ORCID iD: 0000-0003-3724-2399
2022 (English)In: The World Economy, ISSN 0378-5920, E-ISSN 1467-9701, Vol. 45, no 6, p. 1650-1689Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
Blackwell Publishing, 2022. Vol. 45, no 6, p. 1650-1689
Keywords [en]
employment, export, immigrants, import, wages
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-96199DOI: 10.1111/twec.13240ISI: 000751291100001Scopus ID: 2-s2.0-85124478724OAI: oai:DiVA.org:oru-96199DiVA, id: diva2:1624202
Projects
Migration, integration och företagens globalisering
Funder
The Jan Wallander and Tom Hedelius Foundation, P20160099:1Available from: 2022-01-03 Created: 2022-01-03 Last updated: 2022-06-14Bibliographically approved

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Lodefalk, MagnusTang, Aili

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