The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

Variations in Fertility and Earning Patterns among Immigrants in the United States, 1970–1980: Assimilation or Disruption?*

"This paper examines the assimilation of immigrants in familial and economic fields.... Specific objectives are as follows: (1) to describe fertility and earning patterns among immigrants to the United States in 1970-1980, from several countries of origin, and (2) to describe some effects of assimilation, human capital, and the dual labor market perspectives on immigrant earnings." Findings vary in both fertility and economic categories for migrants depending on whether they are from developed or developing countries. (SUMMARY IN FRE AND SPA)     

Earning Disparities between Immigrants and Native‐born Canadians*

La contribution économique des immigrants est mesurée par l'am‐pleur de leurs salaires. Plus on diminue l'écart des salaires, plus les immigrants sont sensés se doter du capital humain. En utilisant les données du recensement de 1996, cet article compare des groupes d'immigrants avec des Canadiens de naissance de même sexe et de même origine raciale à quatre niveaux de la région métropolitaine de recensement, définie par la taille de la population. Les résultats indiquent que les immigrants de même sexe et de même origine raciale gagnent soit le même salaire sinon plus que leurs homologues canadiens. Cependant, en prenant en considération les variations dans le capital humain, l'expérience, les différences dans l'échelle urbaine, la taille de la population immigrante et le taux de chômage, tout groupe d'immigrants gagne moins que son homologue canadien. L'ampleur des salaires nets entre les immigrants et les Canadiens de naissance varie selon le sexe, l'origine raciale et moins ainsi selon le niveau de la région metropolitaine de recensement. Plusieurs fac‐teurs, dont les possibilités d'emploi inégales, touchent le salaire des immigrants. II n'est pas du tout évident de supposer que la teneur du capital humain des immigrants est inférieure alors qu'elle est déduite de la disparité de salaires. The economic contribution of immigrants is often measured by their earnings in that the closer they are to the earnings of native‐born Canadians and the more quickly immigrants can bridge the income gap, the more immigrants are assumed to be endowed with human capital. Using microdata of the 1996 census, this paper compares immigrant groups with native‐born Canadians of the same gender and racial origin at four levels of Census Metropolitan Area defined by population size. The findings indicate that immigrants of the same gender and racial origin earned either the same or more than their native‐born counterparts. However, when variations in human capital, experience, and other individual differences in work‐related characteristics and immigrant experience are taken into account, along with differences in urban scale, immigrant population size and unemployment rate, all immigrant groups earned less than their native‐born counterparts. The magnitude of net earning disparities between immigrants and native‐born Canadians varies, depending on gender, racial origin and less so on CMA level. The study suggests that many factors, including unequal opportunities, affect the earnings of immigrants, and that the assumption of immigrants' inferior human capital content inferred from earning disparities is tenuous at best.     

Metropolitan Labour Markets, Peripheral Labour Markets and Socio-economic Outcomes among Immigrants to Israel

This article focuses on the impact of the local opportunity structure on socio‐economic outcomes of recent immigrants to Israel. Specifically, it examines the extent to which metropolitan labour markets versus peripheral labour markets differentially affect socio‐economic incorporation of recent “Russian” immigrants who arrived in Israel after the collapse of the former Soviet Union in 1989. Using the 1995 Israeli Census of Population, the analyses address the following questions: (1) were recent immigrants differentially sorted to local labour markets; (2) do local labour markets differentially affect socio‐economic attainment; and (3) do modes of socio‐economic attainment and patterns of ethnic inequality differ across metropolitan and peripheral labour markets? The analyses reveal that immigrants from the European republics and of lower education are more likely to settle in peripheral labour markets than in metropolitan labour markets. Peripheral labour markets, compared with metropolitan labour markets, have detrimental consequences for the socio‐economic outcomes of immigrants. The data do not provide strong support for the thesis that patterns of socio‐economic attainment and inequality differ much across labour markets. The rules according to which socio‐economic attainment of immigrants is determined are, for the most part, similar across labour markets. In general, occupational status and earnings of immigrants are likely to increase with the passage of time, education, European origin; and to decline with age regardless of type of the local labour market. However, the socio‐economic outcomes of immigrants are considerably higher in the metropolis than in the periphery. The findings suggest that the local labour market plays a major role in the determination of immigrants' socio‐economic rewards and outcomes.     

Decreasing the Recent Immigrant Earnings Gap: The Impact of Canadian Credential Attainment

It is well documented that newly arrived immigrants face a significant earnings gap relative to native‐born workers. One way for new immigrants to improve their relative labour market position upon arrival in a host country is to improve their educational credentials. According to signalling theory, a host‐country credential should provide employers with a proxy for true productivity on the job, leading to higher earnings. Using data from a Canadian longitudinal survey, we employ longitudinal growth‐curve techniques to estimate the effect of receiving a Canadian educational credential on the income growth of racial‐minority recent immigrants compared to native‐born Canadians. The results indicate that the earnings gap between recent immigrants and native‐born Canadians is significantly reduced with the attainment of a Canadian educational credential.     

Recent Immigration to Canada and the United States: A Mixed Tale of Relative Selection

Using large‐scale census data and adjusting for sending‐country fixed effect to account for changing composition of immigrants, we study relative immigrant selection to Canada and the U.S. during 1990–2006, a period characterized by diverging immigration policies in the two countries. Results show a gradual change in selection patterns in educational attainment and host‐country language proficiency in favor of Canada as its post‐1990 immigration policy allocated more points to the human capital of new entrants. Specifically, in 1990, new immigrants in Canada were less likely to have a B.A. degree than those in the U.S.; they were also less likely to have a highschool or lower education. By 2006, Canada surpassed the U.S. in drawing highly educated immigrants, while continuing to attract fewer low‐educated immigrants. Canada also improved its edge over the U.S. in terms of host‐country language proficiency of new immigrants. Entry‐level earnings, however, do not reflect the same trend: Recent immigrants to Canada have experienced a wage disadvantage compared to recent immigrants to the U.S., as well as Canadian natives. One plausible explanation is that while the Canadian points system has successfully attracted more educated immigrants, it may not be effective in capturing productivity‐related traits that are not easily measurable.     

In Search of a Better Life: The Experiences of Working Poor Immigrants in Vancouver,Canada

We utilized data from 72 in‐depth interviews with immigrant hotel and hospital support workers employed in the service sector of Vancouver, Canada to analyse migration decisions and subsequent experiences after arrival. We found that migrant social networks were centrally important, both as a stimulus for migration and in shaping post‐arrival experiences. At the same time, the working conditions faced by immigrants after arrival, such as low pay and long work hours, resulted in serious challenges. While some struggled with multiple jobs to make ends meet, others felt their economic circumstances prevented them from even bringing their children to Canada. In some cases, children were returned to their country of origin. Features of low‐wage service sector jobs also limited the time available for participation in community life. The findings both support and advance recent theoretical contributions about the incorporation of immigrants in the United States and Canada. As immigrants frequently face occupational downgrading and are channelled into low‐wage service sector jobs, the conditions of work and social policies are important for their post‐arrival experiences and incorporation. Going beyond traditional conceptions of citizenship in the immigration literature, some respondents acted through their union and community organizations to attempt to change society and improve their fortunes. While some sought social justice through political activism, others used their limited family and community life time to reterritorialize values from their countries of origin. Part of their activism was transnational, such as sending remittances to help loved ones back home, but other involvement included participation in organizations with the aim of promoting social justice or improving life in their new country. The experiences of immigrant service sector workers in Vancouver suggest a need for greater emphasis on the role of both immigrant and non‐immigrant specific social and labour policies for understanding immigrant incorporation in North America.     

Immigrants in the Old‐Age Pension System: The Case of Sweden

The article investigates incomes and especially state pensions 2008 among elderly immigrants who arrived in Sweden before 1970. At age 70 and above, the level of state old‐age pension for immigrant men was nearly the same and for immigrant women somewhat higher than for natives with similar characteristics. At age 65–66 the state pension was lower for immigrants than for their native counterparts. The differences in pensions for immigrants of different ages are probably due to changed rules in the Swedish state old‐age pension system from 2003. The new rules have hit different age groups in different ways. The gaps are partially levelled out when other incomes are included. The extent to which levelling occurs varies greatly between different immigrant groups. For immigrants who have arrived during the last decades, the future state old‐age pension outcomes are expected to be worse.

Policy Implications

• The Swedish Pensions Agency should set up a register of pensions from abroad. This will tell us to what extent old‐age pensions from the home country compensate for low old‐age pensions from the Swedish system.
• Better integration on the labour market is a powerful measure for reducing the risk of future low pensions among immigrants. This is a challenge for Swedish integration policy.
• To what extent can other parts of the Swedish welfare system in the future compensate individuals with low old‐age pensions?

     

Success on European Labor Markets: A Cross‐national Comparison of Attainment between Immigrant and Majority Populations1

Typical labor market outcomes vary considerably between majority and migrant populations. Drawing on scholarship from across the social sciences, we assess competing micro‐ and macro‐level explanations of differential occupational attainment among immigrant groups across 28 countries. The analyses of occupational attainment are run separately for first‐ and second‐generation migrants as well as children of mixed marriage and take into account their wider social and cultural background. Results from four rounds of the European Social Survey show that people with a migration background do not necessarily achieve a lower labor market success than the majority. However, human capital, social mobility, and cultural background explain these outcomes to different degrees, suggesting tailored pathways to labor market success for each group of migrants. We also find that occupational attainment varies considerably across countries, although this is hardly attributable to immigration policies. These and other findings are discussed in the light of previous studies on immigrant incorporation.     

Between Two Worlds: Source‐Country Gender Roles and Gender Differences in Educational Attainment among Immigrant Children

Recent scholarship has focused on the relationship between source‐country characteristics such as female labor force participation, fertility, level of economic development, gender role attitudes, and immigrants’ labor market assimilation. These studies refer to national‐level factors when accounting for the vast differences in home‐country groups in labor market outcomes. This study asks to what extent these source‐country characteristics affect immigrant children's educational outcomes. Using data from the 2006 Canadian Census and World Values Survey, this article examines the extent to which the gender gap in educational attainment among immigrant children is associated with source‐country factors. Female child immigrants who come from countries with high female labor force participation and high levels of GDP have an advantage over their male counterparts in university education. Source‐country gender role ideology played a role in university completion rates for immigrant parents, but not for child immigrants.     

Ethnic Enclaves,Networks and Self‐Employment among Middle Eastern Immigrants in Sweden

The proportion of immigrants from countries in the Middle East living in Sweden has increased since the 1970s, and it is a well‐known fact that immigrants from the Middle East suffer from low earnings and high rates of unemployment on the Swedish labour market. There are often great hopes that self‐employment will enable immigrants to improve their labour market situation. Further, in Sweden as in many other countries, the question of whether the existence of ethnic enclaves are good or bad for immigrants’ earnings and employment opportunities has also been widely debated. This paper presents a study of the extent to which Middle Eastern ethnic enclaves and networks in Sweden enhance or hinder immigrants’ self‐employment. The results show that the presence of ethnic enclaves increases the propensity for self‐employment. Thus, immigrants in ethnic enclaves provide their co‐ethnics with goods and services that Swedish natives are not able to provide. The results also show that ethnic networks seem to be an obstacle to immigrant self‐employment. One explanation is that an increase in network size implies increased competition for customers among self‐employed immigrants. The question of whether ethnic enclaves are good or bad for the integration of immigrants into the labour market has been widely debated. The results of this paper provide us with information about the integration puzzle. Ethnic enclaves seem to enhance self‐employment propensities among Middle Eastern immigrants in Sweden.     

Emotional Integration across Immigrant Generations in Baden‐Württemberg,Germany: the Role of Discrimination

Immigrants’ integration is a multi‐faceted process, involving structural, cultural, social, and emotional dimensions. This study focuses on the emotional dimension of integration, investigating immigrants’ emotional attachments to their national origin and their host country. Specifically, we ask what role perceived discrimination plays in shaping identification preferences among immigrants and immigrant descendants in Germany. The contribution of this study is twofold: First, we present results for three generations of post‐WWII labour migrants of Turkish and Italian descent. Second, we estimate the consequences of perceived individual discrimination for national and ethnic identification separately. The findings indicate that while discrimination is not related to ethnic identification, it is negatively correlated with national identification. Regarding future challenges, we believe that our findings suggest that the German society can come closer to achieving integration of migrants by reducing perceptions of rejection by the immigrant population, or better yet, fighting off discrimination against immigrant minorities.     

Exploring Social and Geographical Trajectories of Latin Americans in Sweden

Close to 20 percent of the Swedish population are of immigrant origin; one in eight is foreign‐born. About 45 percent of all immigrants originate from outside Europe and most of these have entered the country as refugees or relatives of refugees. Issues connected to immigration, including the number of immigrants, settlement patterns and level of social integration of ethnic minorities, have been much discussed in Sweden in recent decades. This paper focuses on the integration of Latin American immigrants in Sweden. It compares the level of integration – measured as educational achievement, labour market participation, income and housing – experienced by first and second generation migrants. I use register information allowing me to include all 1^st and 2^nd generation Latin Americans that have lived in Sweden between 1990 and 2006 (in total 127,000 individuals). Data are longitudinal, which means that individuals can be followed over time. I make use of the longitudinal material in order to study changes in residential patterns and in attempts to explain educational and employment outcomes for second generation Latin Americans. The general conclusion of the paper is that in terms of integration, LAC immigrants have an intermediate position compared to other immigrant categories; they are often better off than people from Africa and the Middle East but clearly below the level experienced by some other migrants, especially those from Western Europe. This cannot be explained by level of education. The average level of education is high for first generation immigrants from LA countries. For many people, the level of labour market participation and income increase over time but one important result of this analysis is that second generation Latin Americans seem to do less well in Sweden compared to many other second generation migrants.     

Pre‐ and Post‐Migration Determinants of Socio‐Cultural Integration of African Immigrants in Italy and Spain

Using a unique dataset (N=2,014), we examine the pre‐ and post‐migration determinants of socio‐cultural integration among first‐generation immigrant groups in southern Europe: Moroccan and Senegalese migrants in Spain, and Egyptian and Ghanaian migrants in Italy. The results of the pooled and immigrant‐group specific regression analyses partly highlight the dominance of pre‐migration factors. Immigrants who were well‐educated and well‐informed prior to migrating and who migrate at a young age, achieve higher levels of socio‐cultural integration. Going against some hypotheses found in the literature, female gender and North African origin have a positive effect on socio‐cultural integration as opposed to male gender and sub‐Saharan origin. With regard to post‐migration factors, occupational status is the main economic determinant of socio‐cultural integration. Interestingly, being employed as such has no significant effect on socio‐cultural integration. This suggests that labour market segmentation and discrimination negatively impact upon socio‐cultural integration. The results also suggest that policies allowing immigrants to benefit from the human capital they carry across borders and achieve upward socio‐economic mobility are likely to enhance their socio‐cultural integration.     

Cultural dissimilarity and intermarriage. a longitudinal study of immigrants in Sweden, 1990–2005

Intermarriage with natives is a key indicator of immigrant integration. This article studies intermarriage for 138 immigrant groups in Sweden, using longitudinal individual level data. It shows great variation in marriage patterns across immigrant populations, ranging from over 70 percent endogamy in some immigrants groups to below 5 percent in other groups. Although part of this variation is explained by human capital and the structure of the marriage market, cultural factors (values, religion, and language) play an important role as well. Immigrants from culturally more dissimilar countries are less likely to intermarry with natives, and instead more prone to endogamy.     

Nationality Policies in the Books and in Practice: Comparing Immigrant Naturalisation across Europe

This article explores whether differences in the implementation of nationality laws explain gaps between nationality laws and nationality acquisition across Europe. Previous research confirms that nationality acquisition among the foreign-born in Western European countries is largely determined by the inclusiveness of nationality policies and the characteristics of the immigrant population. Drawing on recent data on nationality procedures across Europe, this article argues that, regardless of the nationality laws in place, nationality procedures create major obstacles for different types of immigrants. This article uses data from the European Social Survey to conduct multi-level analysis of nationality acquisition in 17 European countries among long-settled foreign-born adult arrivals, controlling for their individual, origin and destination country characteristics. The analysis finds that nationality procedures are as important as nationality laws for nationality acquisition among most immigrants living in Europe today, especially for immigrants who are most likely to benefit and apply: immigrants from developing countries.     

The Times They Are A‐Changin’: Declining Immigrant Employment Opportunities in Scandinavia1

This article compares and contrasts male immigrant labor market experiences in Sweden and Denmark during the period 1985–1995. Using register‐based panel data sets from Sweden and Denmark, a picture of the employment assimilation process of immigrants from Norway, Poland, and Turkey is presented. The comparative approach shows that immigrants in Sweden and Denmark experienced similar declines in employment prospects between 1985 and 1995 despite quite different developments of aggregate labor market conditions. A possible explanation is that the changing organizational structure – toward more flexible work organization – has resulted in a decrease in the attractiveness of immigrant employees due to the increasing importance of country‐specific skills and informal human capital.     

Earning Gaps for Chinese Immigrants in Canada and the United States

This study compares the US and Canada on the gap in earnings between Chinese immigrants and native‐born whites. Canada and the US are arguably more alike than most possible country pairings, yet they differ in significant ways in their approaches to immigration and integration. The primary difference between Canada and the US regarding immigration policy is that Canada selects a larger proportion of economic immigrants – that is, those admitted based on their ability to contribute to the economy – than the US's focus on family reunification. Canadian immigration and multicultural integration policy does not appear to improve Chinese immigrant earnings in the way that might be predicted from Canada's skilled‐based immigrant selection policy and welcoming social context. In spite of a more laissez‐faire approach to immigrant integration and a less skill‐selective immigration policy, we show that Chinese immigrants are earning relatively more in the US than in Canada.     

Immigrant Populations and the Labour Market in Greece at the Beginning of the Twenty‐First Century

Our purpose in undertaking this research is to methodically map the labour market circumstances of the main immigrant groups in Greece. We classify all of the Districts of Greece into three categories (Diverse, Mixed and Unmixed) according to the ethnic composition of each District. We measure how the employment status of the immigrants varies (1) according to the ethnic group and sex of the immigrant, and (2) according to the ethnic composition and economic structure of a District. In general, the majority of immigrants exhibit lower unemployment and higher economic activity rates than the indigenous Greeks. Three immigrant groups (Albanians, Bulgarians and “Other”), which make up two‐thirds of the foreign‐born population of Greece, have lower unemployment rates than the national average, and lower rates than Greeks as well. The poorest labour market outcomes are observed in Unmixed and Mixed Districts, whereas Diverse Districts are better off. At the regional level, the most disadvantaged Geographical Department is the Ionian Islands, since it presents the highest unemployment rates for the general population for both sexes. With regard to sex‐differential unemployment across immigrant groups, we found that women exhibit higher unemployment than men in almost every ethnic group.