Income gaps between natives and immigrants in Sweden

Earning gaps between natives and immigrants in Sweden have been a widely discussed issue in the literature. The previous studies that examined the wage gaps mostly focused on educational attainment, tenure, generation of immigrants and ethnic origins. The distribution of immigrants¿ income within different labour market sectors is almost unexplored. The paper analyzes several determinants of income among natives and immigrants. The effect of education and origin within different labour market sectors is of particular interest. The study aims to reveal which sector has more possibilities of income generation for immigrants and whether the employment in the sector leads to diminishing income gaps among natives and immigrants.The effect of three-way interactions ¿origin * industry * education¿ is intented to shed light on income differentials within labour market sectors.The analysis should be helpful for people interested in demograhy and migration issues.