Sweden, Covid-19, and the gender gap in labor market integration : A quantitative study on the effect Covid-19 had on the gender gap in unemployment rates of foreign-born in Sweden

Abstract: Successful labor market integration is a key attribute in a well-accomplished migration policy. Previous studies show patterns of a gender gap in labor market integration of foreign-born, where females tend to have worse outcomes. Related to their weaker labor market position foreign-born, in general, tend to be affected by economic crisis to a larger extent than native-born. Studies point to this being even more apparent for immigrants migrating from outside of Europe. Few studies have yet studied the labor market effects of the Covid-19 pandemic. This paper hence investigates whether the gender gap in unemployment rates for foreign-born were affected by the Covid-19 pandemic, using a difference-in-difference and a triple-difference method. Considering the broad variation of attributes within the group “foreign-born” the paper also distinguishes how the effect differed with number of years spent in Sweden and the region of origin being inside or outside of Europe. The results show an insignificant impact of the pandemic on the gender gap for foreign-born in general, even in relation to natives. Looking into the heterogeneity within the group, we find that newly arrived show signs of being more affected by the pandemic compared to foreign-born that spent over three years in Sweden. The same thing goes for immigrants born outside of Europe compared to within Europe.