Immigrants' relative earnings in Sweden – a quantile regression approach

Abstract

PurposeThere is now a large amount of literature on immigrants' relative earnings and immigrants' earnings assimilation in different countries. This paper aims to contribute to international research, since the paper investigates the earnings gap between different groups of immigrants and natives at different parts of the earnings distribution in Sweden.Design/methodology/approachQuantile regressions are estimated on a large dataset in order to study to what extent there are differences in the earnings gap between different groups of immigrants and natives at the top and the bottom of the earnings distribution in Sweden.FindingsThe study shows, that immigrants are doing relatively better at the top than at the bottom of the earnings distribution. This is the case for males as well as for females. Furthermore, the study also shows that in times of recession, the earnings gap between immigrants from European countries and natives remains stable, while the earnings gap between non‐European immigrants and natives at the bottom of the earnings distribution increases substantially.Originality/valueThis paper is useful to those wishing to examine the extent of differences in earnings between immigrants and natives and differences in earnings between different immigrant groups.