Declining employment success of immigrant males in Sweden: Observed or unobserved characteristics?

Focusing on Nordic and Yugoslavian immigrant males, we study the determinants of employment success of natives and immigrants in Sweden. Furthermore, we investigate the reasons behind the arising gap in employment success between Swedes and immigrants from 1970 to 1990. In a decomposition analysis, we find that the main part of the decline in the employment probability of immigrants relative to Swedes over time is explained by a change in coefficients (unobserved characteristics) rather than a change in determinants (observed characteristics).