Wage Effects of Search Methods for Immigrants and Natives – The Case of Sweden

• Using unique cross-section survey data collected in 1998 and 2003, this study examines whether successful job-search methods differ between natives and immigrants, and whether there is a wage difference between the two groups associated with the search method used. It is found that the direct method is the successful search method for about 1/3 of the sample. However, informal methods are even more often the successful one for natives while formal methods are so for immigrants. About forty percent of natives and twenty percent of immigrants find their job using informal methods. This holds for both men and women. Next, a wage analysis has been performed, which shows that there is a positive return from gaining the job by informal compared to formal search methods for native men. For immigrant men the corresponding return is of the same size, but with opposite sign. No such difference is found for women. A similar return as for the informal method is found for the direct method, which implies the similarity of the informal and direct method in the Swedish context. Also, when pooling the data for immigrant and native men the smallest immigrant wage discount is found when getting the job by the formal search method, being half the size compared to the discount for other methods of search. Hence, the results indicate inferior networks of immigrant men, which support the argument to increase job search through formal methods, such as public employment agencies, and to use specially designed “immigrant-coaches” in this process. However, to what extent these results are due to selection into job search methods is yet unclear.  

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Job search

Immigrants

Wage differences

Economics

Nationalekonomi

Economics

Nationalekonomi

Publikations- och innehållstyp

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