Template-type: ReDIF-Paper 1.0 Author-Name: Baum, Christopher F. Author-Email: kit.baum@bc.edu Author-Workplace-Name: Boston College, and DIW Berlin Author-Name: Lööf, Hans Author-Email: hans.loof@indek.kth.se Author-Workplace-Name: Royal Institute of Technology (KTH), Stockholm Author-Name: Stephan, Andreas Author-Email: Andreas.Stephan@ju.se Author-Workplace-Name: Jönköping University, and DIW Berlin Author-Name: Zimmermann, Klaus F. Author-Email: zimmermann@merit.unu.edu Author-Workplace-Name: UNU-MERIT, Maastricht University, and CEPR, GLO Title: Occupational sorting and wage gaps of refugees Abstract: Refugee workers start low and adjust slowly to the wages of comparable natives. The innovative approach in this study using unique Swedish employeremployee data shows that the observed wage gap between established refugees and comparable natives is mainly caused by occupational sorting into cognitive and manual tasks. Within occupations, it can be largely explained by differences in work experience. The identification strategy relies on a control group of matched natives with the same characteristics as the refugees, using panel data for 2003–2013 to capture unobserved heterogeneity. Classification-JEL: C23, F22, J24, J6, O15 Keywords: refugees, wage earnings gap, Blinder - Oaxaca decomposition, employer - employee data, coarsened exact matching, correlated random effects model Series: UNU-MERIT Working Papers Creation-Date: 20200527 Number: 2020-023 File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-023.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2020023