Regional labour market effects of immigration on low-skilled workers: the case of Sweden 1990–2003

Purpose The purpose of this paper is to examine the effects immigration on labour market outcomes low-educated natives (i.e. residents without a university diploma). Using competition theory, which argues that depend skill set immigrants, addresses whether immigrants are complementary or substitutes for native workers. Design/methodology/approach Longitudinal matched employer–employee data Sweden used estimate how natives, in regions experiencing greatest influx refugees from Balkan wars, responded supply shock with regard real wages, employment and job mobility between 1990 2003. Findings First, analysis shows workers respond arrival an increase wages. Second, although prospects general worsened low-skilled most regions, not attributable largest shock. Third, there indications immigration-rich more likely change workplace, particularly combination moving upwards wage distribution. Originality/value Rather than seeing emergence commonly perceived displacement mechanism when economy subject shock, regional findings suggest high inflows tend induce pulls This important, as proportion seldom evenly distributed within nation.