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The Ethnic Employment and Income Gap in Sweden: Is Skill or Labor Market Discrimination the Explanation? *
Author(s) -
Nordin Martin,
Rooth DanOlof
Publication year - 2009
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2009.01573.x
Subject(s) - ethnic group , test (biology) , affect (linguistics) , economics , demographic economics , labour economics , ethnic discrimination , psychology , political science , paleontology , communication , law , biology
This study uses a cognitive test score, the Swedish Military Enlistment test taken at age 18, to identify whether the ethnic employment and income gap in Sweden is caused by a pre‐market skill gap and/or ethnic discrimination. The employment gap and income gap are estimated for males born in Sweden with different ethnic backgrounds: their parents were born in Sweden or in southern Europe or outside Europe. Controlling for the cognitive test score does not affect the ethnic employment gap, and for incomes the ethnic income gap almost disappears.