Wage Policies and the Integration of Immigrants

Ek, S. and Skedinger, P. (2019), Wage Policies and the Integration of Immigrants, in Calmfors, L. and Sanchez Gassen, N. (eds.), Integrating Immigrants into the Nordic Labour Markets, Nordic Council of Ministers, Copenhagen.

32 Pages Posted: 6 Jan 2021

See all articles by Simon Ek

Simon Ek

Research Institute of Industrial Economics ; Uppsala University - Department of Economics

Per Skedinger

Research Institute of Industrial Economics (IFN); Linnaeus University - School of Business and Economics

Date Written: May 29, 2019

Abstract

Most Nordic countries struggle with the integration of low-skilled immigrants. Relying on research from primarily the Nordics, we discuss to what extent minimum wage reductions can improve labour market prospects for immigrants, whether unskilled and low-pay jobs serve as stepping stones to more qualified and higher-paid jobs and how wages of incumbent workers would be affected by lower minimum wages. We argue that targeted minimum wage reductions aimed at new, previously non-existing jobs and increased differentiation of minimum wages according to experience provide an appropriate balance between the conflicting goals of high employment and low wage inequality.

Keywords: integration of immigrants, minnimum wages, wage policies

JEL Classification: J08, J31, J38, J50

Suggested Citation

Ek, Simon and Skedinger, Per, Wage Policies and the Integration of Immigrants (May 29, 2019). Ek, S. and Skedinger, P. (2019), Wage Policies and the Integration of Immigrants, in Calmfors, L. and Sanchez Gassen, N. (eds.), Integrating Immigrants into the Nordic Labour Markets, Nordic Council of Ministers, Copenhagen. , Available at SSRN: https://ssrn.com/abstract=3477925 or http://dx.doi.org/10.2139/ssrn.3477925

Simon Ek

Research Institute of Industrial Economics ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Uppsala University - Department of Economics

Box 513
Uppsala, 751 20
Sweden

Per Skedinger (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se/PerS

Linnaeus University - School of Business and Economics ( email )

VÄXJÖ, SE-351 95
Sweden

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