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International Trade and Labor Market Integration of Immigrants

Lodefalk, Magnus ; Sjöholm, Fredrik LU and Tang, Aili (2020) In Working Papers
Abstract
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.
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
Export, Import, Immigrants, Employment, Wages, F16, F22, J21, J31, J61
in
Working Papers
issue
2020:12
pages
46 pages
language
English
LU publication?
yes
id
87f2943b-45d4-40ef-94eb-801a1bc995db
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2020_012.htm
date added to LUP
2020-09-02 10:41:39
date last changed
2020-09-02 10:41:39
@misc{87f2943b-45d4-40ef-94eb-801a1bc995db,
  abstract     = {{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.}},
  author       = {{Lodefalk, Magnus and Sjöholm, Fredrik and Tang, Aili}},
  keywords     = {{Export; Import; Immigrants; Employment; Wages; F16; F22; J21; J31; J61}},
  language     = {{eng}},
  month        = {{06}},
  note         = {{Working Paper}},
  number       = {{2020:12}},
  series       = {{Working Papers}},
  title        = {{International Trade and Labor Market Integration of Immigrants}},
  url          = {{https://swopec.hhs.se/lunewp/abs/lunewp2020_012.htm}},
  year         = {{2020}},
}