There is an increasingly large wage gap between immigrants and Norwegians, and the wage gap increases the longer immigrants have lived in Norway.
Immigrants find less use for their formal education in the labor market. New comparisons have also been made showing the differences between those born in Norway and those who were not.
The number of immigrants of working age has doubled in 10 years (2003-2013). A new report from the Institute for Social Research (ISF) looks at first generation immigrants in the Norwegian labor market, how they have affected the balance between supply and demand, and the extent to which it has led to an economic integration.
First generation immigrants from low-income countries in Africa, Asia and Latin America, as well as in Eastern and Central Europe, earn significantly less than Norwegians. The wage gap manifests itself between workers who are similar in terms of education, gender, age and career paths. Within the same company, there is significantly less of a difference between comparable workers from Norway and abroad. These immigrants have thus a greater tendency to work in low paying jobs, and this may explain a significant portion of the pay gap.
The survey shows that the wage gap between natives and immigrants from Africa, Asia and Latin America will be greater the longer the immigrant has lived in Norway. Those who come from low-income countries receive less than Norwegians based on their formal education – this difference also increases the longer they have been in this country.
The increase in supply of foreign labor has provided a better balance between supply-and demand in the Norwegian regions. It has thus contributed to a more efficient allocation of labor between geographical labor markets in Norway.
Source: Institute for Social Research / Norway Today