Immigrants’ Returns to Schooling in Sweden

The aim of this paper is to find out if the returns to immigrants’ schooling are lower than the returns to natives’ schooling. In addition the paper tries to establish whether immigrants who invest in different amounts of Swedish education also differ in their returns to schooling. For immigrants arriving in Sweden as adults, the returns to schooling are on average one log point lower than for natives. The results show that returns to schooling are considerably higher for immigrants who arrived in Sweden during compulsory school age than for immigrants who arrived in Sweden after compulsory school age. Moreover, immigrants who complete their schooling in Sweden show, in general, much higher returns than immigrants with only foreign schooling.