International Trade and Labor Market Integration of Immigrants

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1343

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; International Migration ; Labor Force and Employment, Size, and Structure ; Wage Level and Structure; Wage Differentials ; Geographic Labor Mobility; Immigrant Workers
• Subject: Export ; Import ; Immigrants ; Employment ; Wages

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lodefalk, Magnus ; Sjöholm, Fredrik ; Tang, Aili
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/240486
• Last update: 10.03.2025, 11:42 AM CET