Recruiting Highly Skilled Migrants in the Automotive Industry of Sweden: Exploring ethnic-based discrimination

Abstract

Purpose: This paper focuses on ethnic-based discrimination and explores the inequal integration of highly skilled migrants in the automotive industry of Sweden. The core of the analysis consists of interorganizational relationships, recruitment practices and motives as mechanisms of discrimination and inequality. Theory: The theoretical framework of this paper consists of the main intertwining concepts of discrimination and durable inequalities in the labour market. Method: Qualitative study, semi-structured open-ended interviews. Results: The study revealed that discrimination and consequently inequalities are embedded in the manufacturing and consultancy companies, operating in the automotive industry of Sweden. Firstly, the power dynamics and client relationships between manufacturing and consultancy companies are able to force inequalities and establish explicit discrimination. Regarding the distribution of ethnic diversity within manufacturing and consultancy companies, highly skilled migrant employees are categorized in subordinate roles compared to natives. Namely, homophily and network recruitment are the main identified factors associated with vertical inequality and limited opportunities for development for high skilled migrants. Additionally, recruitment practices are responsible for the ethnic-based discrimination and inequal integration of highly skilled migrants, allowing hiring professionals to exercise opportunity hoarding and exclusion, according to their preferences. Highly skilled migrants were also praised for their rare and valuable skills as well as their hard-work attitude compared to native employees. Yet, data revealed the systematic exclusion of highly skilled migrants from the full value of their labour. Finally, bureaucratic hurdles in the work permit process constitute a subtle mechanism of indirect discrimination, due to the limited time resources from the side of organizations.