International trade and labour market integration of immigrants

PublicationArticle (with peer review)

Magnus Lodefalk

Abstract

Abstract

We examine whether international trade improves labour market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labour market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks needed to overcome information frictions in trade. Using granular longitudinal matched employer–employee data and an instrumental variable approach, we estimate the causal effects of a firm’s bilateral trade on employment and wages of immigrants from that country. We find a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

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Lodefalk, M., Sjöholm, F., & Tang, A. (2022). International trade and labour market integration of immigrants. The World Economy, 45, 1650– 1689.

Ratio Working Paper No. 359: Stayin’ Alive: Export Credit Guarantees and Export Survival

Working paperPublication

Lodefalk, M., Tang, A. & Yu, M.

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Publication year

2022

Published in

Ratio Working Paper.

Abstract

We use survival analysis to analyse the impact of export credit guarantees on firms’ export duration using granular Swedish panel data at the firm-country and firm-country-product levels. The estimation results show that firms’ export survival substantially increases with guarantees, at both levels. The associations are particularly strong for smaller firms and contracts as well as in trade with riskier markets. The findings have implications for policies to promote long-run export growth.

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Article (without peer review)Publication

Lodefalk, M.

Publication year

2020

Published in

Ekonomisk

Ratio Working Paper No. 335 International Trade and Labor Market Integration of Immigrants

Working paperPublication

Lodefalk, M., Sjöholm, F. & Tang, A.

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Publication year

2020

Published in

Ratio Working Paper

Abstract

We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks needed to overcome information frictions in trade. Using granular longitudinal matched employer–employee data and an instrumental variable approach, we estimate the causal effects of a firm’s bilateral trade on employment and wages of immigrants from that country. We find a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

Abstract

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