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Job Search Methods and Wages: Are Natives and Immigrants Different?

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Manchester School

Published online on

Abstract

We conduct a survey of newly hired workers in the Swedish labour market to analyse if there are differences between natives and immigrants in the choice of search intensity/methods and in the search method getting the job. We further investigate if the wage and other characteristics of the new job differ depending on the successful search method. We find that immigrants use all search methods more than natives, but they especially rely on informal search. Immigrants are more likely than natives to find a job using informal search through friends and relatives, and these jobs are associated with lower wages.