Migrant-native differentials in job applications and the displacement effect of migrants on natives’ employment

Abstract
In this paper we document some new empirical facts on the job search behaviour of migrants. Using data from the largest online platform in Sweden, we find strong segregation between migrants and natives already at the application stage. Migrants from developing countries apply to jobs that pay 6% less (3% less when controlling for observable characteristics) and to employers that pay 3% less. Even conditional on applying, migrants are less likely to be hired. Because of segregation at the application level, and because the marginal migrant applicant exert less competition than the marginal native in vacancy-level tournaments, the displacement effect of migrants on natives’ probability to be hired is mitigated. We use a simple conceptual framework to quantify the displacement effects of migrants, as well as the contributions of segregation and competition channels. Joint paper with Marion Brouard, Lena Hensvik and Thomas Le Barbanchon.