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Does labour immigration replace or complement domestic workers?

19.05.2025 - Labor market, welfare and society

Labor immigration to Norway increased significantly after the EEA expansion in 2004. Labor immigration can meet the country’s need for labor, but it can also lead to the displacement of domestic labor. 

On behalf of the Ministry of Labor and Social Inclusion, Oslo Economics has investigated how labor immigration after 2004 has affected employment and transitions to other outcomes among the domestic population. Based on register data analyses, we find that there is no overall displacement effect for the population, but that labor immigration has other consequences for the occupational structure and educational choices among young people. 

The project was carried out by Oslo Economics, in collaboration with Ragnhild Schreiner at the University of Oslo and Oddbjørn Raaum at the Frisch Centre. 

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Erik Magnus Sæther
Erik Magnus Sæther
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