Early Labour-Market Experiences of Second-Generation Immigrants in Sweden

Abstract

This paper investigates second generation immigrant's early labour-market performances in Sweden. To study their labour-market success we estimate dynamic transition rate models -Cox type proportional hazards, in a competing risk framework using register based panel-data set. Our results reveal that parental resources affect not only second-generation immigrants' continuing education but also their later labour-market success. The study verifies that finding a job is difficult for second-generation immigrants and the significant unobserved-heterogeneity parameter estimate may indicate discrimination. As a whole, second-generation immigrants have worse labour-market performances compared to their native-born counterparts.