Even Swedish work experience matters less when you were born abroad
Swedish work experience raises wages for foreign-born workers. IFAU followed entire careers and found that the increase is generally larger for workers born in Sweden.
Swedish work experience raises wages for foreign-born workers, but IFAU found that the increase is generally larger for workers born in Sweden.
Researchers at IFAU used historical registers and longitudinal data to reconstruct workers’ complete employment histories. The wage return from Swedish labour-market experience was substantial at first and then declined for both groups.
Where that experience was gained also mattered. Time in higher-skilled, better-paid workplaces produced larger wage gains, while returns differed by gender, education, industry and occupation.
The wage premium for foreign-born workers has increased since the early 2000s, but remained generally lower than for native-born workers. The report measures pay returns to experience; it does not establish why the gap exists or prove discrimination in individual workplaces.
For immigrants building a career in Sweden, the finding means the first job can affect later wage growth as well as the starting salary.
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