The making of ethnic segregation on the labor market—evidence from a field experiment

Abstract Western labor markets are typically segregated by country of birth, with immigrants often employed in roles such as cleaners, taxi drivers, and fast-food cooks. We examine whether employers are more likely to select immigrants for these low-skilled jobs. We use data from correspondence tests conducted in Sweden in the 2010s, with about 7,000 job applications submitted. While ethnic discrimination is widespread in occupations dominated by native-born workers, it decreases as the proportion of immigrants in an occupation rises. There is no discrimination against immigrant men applying for positions of cleaners and drivers. We conclude that discriminatory employer hiring choices contribute to reproducing male-dominated and low-qualified immigrant niches in the labor market.