Description
This dissertation examines the labor market outcomes of a population of natives and immigrants in Sweden from 1968 and until 2001. Previous research has consistently pointed to the importance of an individual’s country of origin, without being able to fully explain why this is the case. The standard approach is to use country of origin as a proxy for all things which occur prior to migration, including linguistic and cultural differences from the destination country. Using unique information on the immigrant’s experience prior to migration, this thesis is able to differentiate some of the mechanisms which are usually merged into the country of origin effect, and estimate the magnitude of their effects on the post-migration labor market outcome. Particularly among highly-skilled immigrants, the results point towards the importance of language skills in adjusting to the Swedish labor market, as well as suggesting substantial returns to educational investments made after migration. Another key finding pertains to the lasting influence of health conditions during infancy, suggesting that exposure to adverse early-life conditions is likely to permanently influence an individual’s career. Lastly, differences in sector-specific demand for labor in Sweden are suggested as explaining a part of the immigrant disadvantage.
