Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240486 
Year of Publication: 
2020
Series/Report no.: 
IFN Working Paper No. 1343
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
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.
Subjects: 
Export
Import
Immigrants
Employment
Wages
JEL: 
F16
F22
J21
J31
J61
Document Type: 
Working Paper

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