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International Trade and Labor Market - Integration of Immigrants

Magnus Lodefalk, Fredrik Sjöholm () and Aili Tang ()
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Aili Tang: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden, https://www.oru.se/english/employee/aili_tang

No 2020:7, Working Papers from Örebro University, School of Business

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: 44 pages
Date: 2020-08-13
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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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