Drawing on European Social Survey, the main objective of this essay is to analyse the difference in the probability of being unemployed between natives and foreign born in Sweden. Using traditional statistical methods such as Linear Probability Model (LPM) and Blinder-Oaxaca decomposition and controlling for standard socio-economic variables we found that immigrants born in Europe have 5.3 percentage point higher likelihood of being unemployed compared to their Swedish counterpart. Regarding non-European we found that they have 5.2 percentage points higher probability of being unemployed compared to Swedish counterpart. An extension of BlinderOaxaca decomposition suggests that 4.9 percentage points of this gap is due to differences in endowment characteristics between immigrants born in Europe and Swedish counterpart. The difference in the characteristics between nonEuropean and natives amounts to 5.3 percentage points. On the other hand, approximately 1.5 and 10.3 percentage points of the differences in the unemployment probability between immigrants born in Europe and countries outside Europe and Swedish counterpart can be ascribe to different returns to those observable and/or unobservable characteristics that are not captured in the models.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-85825 |
| Date | January 2019 |
| Creators | Ezzulddin, Omar, Haydari, Farid |
| Publisher | Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS), Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS), 1992 |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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