Minimum Wages and the Integration of Refugee Immigrants

25 Pages Posted: 6 Aug 2014

See all articles by Per Lundborg

Per Lundborg

Stockholm University

Per Skedinger

Research Institute of Industrial Economics (IFN); Linnaeus University - School of Business and Economics

Date Written: April 8, 2014

Abstract

This paper is the first to estimate the effects of minimum wages on the unemployment of refugee immigrants. The collectively agreed minimum wages raise both the incidence of unemployment and days in unemployment considerably for male refugees in Sweden; different estimation methods and models yield robust elasticities in the 1.8-2.0 range. The effects for young natives are about half as large. There are heterogeneous effects with regard to country of origin and time of residence in Sweden for both male and female refugees. We account for spatial trends – a concern in some of the recent literature – as well as industrial trends. It turns out that only the latter affect our results.

Keywords: Minimum wages, Integration of refugees, Unemployment

JEL Classification: J23, J61, J64

Suggested Citation

Lundborg, Per and Skedinger, Per, Minimum Wages and the Integration of Refugee Immigrants (April 8, 2014). IFN Working Paper No. 1017. Available at SSRN: https://ssrn.com/abstract=2476418

Per Lundborg (Contact Author)

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Per Skedinger

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se/PerS

Linnaeus University - School of Business and Economics ( email )

VÄXJÖ, SE-351 95
Sweden

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