Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224143
Authors: 
Lodefalk, Magnus
Sjöholm, Fredrik
Tang, Aili
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper 659
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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