One of the most important issues that often appears on the political agenda is the difference between natives and the foreign born in labor market integration. A big difference between these groups would imply worse chances for foreigners of getting work, which can then create problems with implementing labor market policies. However, there is no simple answer to what explains the low labor market integration. Previous research is partly agreed that residential segregation is relevant. On the other hand, there is a disagreement about the way in which it affects the labor market. Moreover, there is an uncertainty about the relevance of socio-economic factors. This study therefore attempts to supplement previous knowledge by studying the impact of residential segregation, but also the effect of the welfare dependency that may have a greater impact on the labor market, as this may mean a habit of not working. This is studied by examining the 100 largest municipalities in Sweden through multiple regressions. The result showed that both residential segregation and welfare dependency has a connection with low labor market integration. Welfare dependency also showed the connection between residential segregation and labor market integration became less strong. Further studies therefore need to examine this variable more thoroughly to determine if this variable causes higher unemployment rates in the labor market. In conclusion, the results of this study can be referred to policies that focus on improving the structural conditions in the municipality by distributing and disposing of social / economic resources in society more fairly among the citizens. / <p>2018-06-07.</p>