International trade and labour market integration of immigrants
(2022) In World Economy 45(6). p.1650-1689- Abstract
We examine whether international trade improves labour market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labour 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.
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https://lup.lub.lu.se/record/1dfc216b-9477-4dcf-8ced-670ac28222fc
- author
- Lodefalk, Magnus LU ; Sjöholm, Fredrik LU and Tang, Aili
- organization
- publishing date
- 2022
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- employment, export, immigrants, import, wages
- in
- World Economy
- volume
- 45
- issue
- 6
- pages
- 1650 - 1689
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:85124478724
- ISSN
- 0378-5920
- DOI
- 10.1111/twec.13240
- language
- English
- LU publication?
- yes
- id
- 1dfc216b-9477-4dcf-8ced-670ac28222fc
- date added to LUP
- 2022-04-13 12:32:53
- date last changed
- 2022-06-30 16:53:21
@article{1dfc216b-9477-4dcf-8ced-670ac28222fc, abstract = {{<p>We examine whether international trade improves labour market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labour 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.</p>}}, author = {{Lodefalk, Magnus and Sjöholm, Fredrik and Tang, Aili}}, issn = {{0378-5920}}, keywords = {{employment; export; immigrants; import; wages}}, language = {{eng}}, number = {{6}}, pages = {{1650--1689}}, publisher = {{Wiley-Blackwell}}, series = {{World Economy}}, title = {{International trade and labour market integration of immigrants}}, url = {{http://dx.doi.org/10.1111/twec.13240}}, doi = {{10.1111/twec.13240}}, volume = {{45}}, year = {{2022}}, }