On the Effects of Temporary Residence Permits on the Socio-economic Incorporation of Immigrants : A Study of the Short-term Effects of a Swedish Reform

Abstract: The thesis addresses the debate about the impact of immigration policy on the socio-economic incorporation of immigrants. A distinction between rights-based and responsibility-based models of incorporation is made and the effect of a feature of the responsibility-based model, temporary residence permits, on socio-economic incorporation is studied. Empirically, a policy change in Sweden that entailed a shift from permanent to temporary residence permits is explored through individual-level register and survey data. The thesis uses a two-folded methodological approach: a traditional regression approach and a fuzzy regression discontinuity design. The composition of the available data motivates the two-folded approach. The limitations of both approaches are discussed, and the results compared and contrasted. The results indicate that immigrants with temporary residence permits work more than immigrants with permanent residence permits. This result should however be interpreted with caution due to the limitations of the approaches used. The results do not show a significant effect oftemporary residence permits on an educational outcome, Swedish tuition, nor on a labour market activation outcome, participation in labour market programmes. The predictions that immigrants with temporary residence permits study less and participate in labour market programmes more than immigrants with permanent residence permits are thus not supported.