The impact of the refugee inflow on the Swedish labour market: Low-skilled labour supply shock

Abstract

This paper examines the effects of the refugee inflows on the labour market in Sweden during the years 2003-2013. The impact of the low-skilled labour supply shock on the Swedish labour market is estimated by regressing the average wage level on the regional refugee density. The panel data analysis shows modest effects, and the refugee inflows seem to have a negative impact only on the least educated workers in Sweden. The results are evaluated cautiously and the possible limits of the analysis are discussed. To provide a comprehensive understanding of the refugee inflows’ impact on the Swedish labour market, future research concerning the effects on the unemployment and the integration of the refugees into the labour market is required.