Declining Employment Assimilation of Immigrants in Sweden: Observed or Unobserved Characteristics?

Weak labour market attachment is a primary reason for unsuccessful integration of immigrants. Therefore, it is interesting to know what affects the probability that immigrants become employed, and hence gain stronger labour market attachment. We study what determines the probability of being employed in Sweden in 1970 and 1990. And, in a decomposition analysis, we investigate whether the decline in employment probability for immigrants over time is due to observed or unobserved differences between the Swedes and the immigrants.