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International Trade and Labor Market Integration of Immigrants

Magnus Lodefalk, Fredrik Sjöholm () and Aili Tang
Additional contact information
Aili Tang: Örebro University, Postal: and Ratio Institute

No 1343, Working Paper Series from Research Institute of Industrial Economics

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.

Keywords: Export; Import; Immigrants; Employment; Wages (search for similar items in EconPapers)
JEL-codes: F16 F22 J21 J31 J61 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-06-17
New Economics Papers: this item is included in nep-int and nep-lma
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Related works:
Working Paper: International Trade and Labor Market Integration of Immigrants (2020) Downloads
Working Paper: International Trade and Labor Market - Integration of Immigrants (2020) Downloads
Working Paper: International Trade and Labor Market Integration of Immigrants (2020) Downloads
Working Paper: International Trade and Labor Market Integration of Immigrants (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1343

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