Impact of Migration on Wages of Low Educated Natives in Sweden, 1993-2003

Abstract: The questions addressed in this paper are (i) What impact does immigration have on the wage level of the low educated Swedish population?, and (ii) what are the other possible factors determining the wages of the low educated Sweden born? Using full population data from 1993 to 2003 with two-year intervals for Swedish data, a fixed effects model is estimated. Factors associated with increasing wage are share of foreign migrants (both from OECD and non-OECD countries) in the labour market, employment level in the economy, share of low educated natives in the labour market, age and having relatively higher education. Factors associated with lower wages, on the other hand, are found to be internal movement from a labour market to another and total days unemployed.