Work

Beyond hiring: the dynamics of ethnic disparities in unemployment

Year: 2026

Type: article

Abstract: Many ethnic and racial minorities experience higher unemployment rates than majority populations. Recent research in this area has largely focused on inequalities in getting a job—through employer discrimination in hiring—using field experiments. While these studies typically identify significant levels of discrimination, they rarely examine or discuss how hiring discrimination contributes to ethnic employment penalties at the aggregate level. Our study draws attention to the role of ethnic and racial inequalities in getting a job but also in remaining employed and avoiding unemployment as factors contributing to aggregate ethnic employment penalties. Our analysis employs population register data from Sweden to estimate unemployment entry and exit rates for the majority and ten groups of children of immigrants (the second generation, G2). Based on counterfactual scenarios we conclude that the substantially higher unemployment rates among the G2 are driven by their higher risk of becoming unemployed rather than their lower chances of becoming employed. Our findings indicate that hiring discrimination and other reasons for inequalities in getting a job play a less significant role than sometimes assumed in explaining ethnic employment penalties—at least in the context of Sweden.

Source: Social Forces

DOI: 10.1093/sf/soag121

Authors: Raffaele Grotti, Siddartha Aradhya, Juho Härkönen

Institutions: Stockholm University, University of Trento, Linköping University, European University Institute

Language: English

Topic: Names, Identity, and Discrimination Research

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $4,152