Integration of Childhood Immigrants in the Short and Long Run – Swedish Evidence1

Immigrant children are often at a disadvantage at school while they adjust to their new environment. It has been found that the age at immigration of 7 or above represents a sensitive period as regards these children’s school performance for two main reasons: they have passed their prime age for language learning, and their acquisition of subject skills is less efficient while they learn to master the new language. Using Swedish administrative data, we track childhood immigrants born between 1972 and 1976 over time from adolescence (at 16) to adulthood (at 30), and study the role of age at immigration for educational and labor market outcomes. We find that immigration at a sensitive age (compared to a very young age) has a strong negative impact on compulsory school performance, but that the same individuals catch up strongly in terms of final educational attainment. In spite of this educational catching up, however, we find a considerable negative impact on earnings for men. We are able to rule out two potential mechanisms behind this puzzling result: It cannot be explained either by an impact on the chosen field of study or on completion time.