International trade and labour market integration of immigrants

Magnus Lodefalk, Fredrik Sjöholm and Aili Tang

The World Economy, 2022, vol. 45, issue 6, 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.

Date: 2022
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Citations: View citations in EconPapers (6)

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https://doi.org/10.1111/twec.13240

Related works:
Working Paper: International Trade and Labor Market Integration of Immigrants (2020)
Working Paper: International Trade and Labor Market Integration of Immigrants (2020)
Working Paper: International Trade and Labor Market - Integration of Immigrants (2020)
Working Paper: International Trade and Labor Market Integration of Immigrants (2020)
Working Paper: International Trade and Labor Market Integration of Immigrants (2020)
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