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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

No 2020:12, Working Papers from Lund University, Department of 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: 46 pages
Date: 2020-06-11
New Economics Papers: this item is included in nep-int, nep-lma and nep-mig
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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:lunewp:2020_012

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