The Female Immigrant Labour Supply: The Effect of an In‐work Benefit

We explore the effect of an in‐work benefit on the labour supply of single immigrant women in Sweden. Using a simulation approach, we find that, on average, the in‐work benefit has no effect on the labour supply of these women. However, women with low incomes increase their labour supply, a response that is the strongest among non‐European and Eastern and Southern European women, and is mainly a result of increased participation in the labour market. High‐income earners slightly reduce their working hours. Thus, the results suggest that the in‐work benefit may strengthen the labour market attachment of low‐income immigrant women.