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Labour market outcomes of immigrants in developed countries have been studied in significant
detail. As a rule, both earnings and the LFP increase the longer an immigrant resides in their new
country, although the level of earnings of immigrants never reach that of natives (e.g. Borjas 1989;
and Chiswick 1978 for US; Barth et al. 2004, Hammarstedt 2003; Scott 1999; and Wikström et al.
2014 for Sweden). The earnings gap between immigrants and natives is even larger for women (UK:
Lemos 2009; Wikström et al. 2014). This is explained by the fact that gender roles are considerably
different in the source and host countries, and the assimilation process is more likely to be achieved
among subsequent generations of immigrants. This earnings gap is also related to country-specific
capital, such as language, the acceptance of a new culture, and the jobs that immigrant workers take
that are often abandoned by native workers (Hammarstedt 2000). Immigrants have higher
unemployment rates and lower LFP, especially among immigrants who come as refugees (BennichBjörkman et al. 2002; Bratsberg et al. 2007; Hansen & Lofstrom 2009; Malm 2005; Rosholm &
Vejlin 2010; Scott 1999). However, employed immigrant women tend to work longer on average
(UK: Lemos 2013). Ethnicity is found to play a remarkable role in differences in earnings and LFP
(Sweden: Bengtsson & Scott 2006; Hammarstedt 2000; Denmark: Rosholm & Vejlin 2010).
Labour supply depends on the number of children in an immigrant family (Bratsberg et al. 2007) and
on the time women spend caring for their families. Generous welfare systems and strong family
support might reduce women’s achievements in the labour market. O