"This paper investigates labour-market performance for 'young people with immigrant backgrounds' and those 'born in Sweden with native-born parents' in the Swedish labour market. It focuses on young people who were aged 18–20 during 1990, and their labour-market status after 8 years, in 1998. The results indicate that young people of immigrant descent have lower annual wage income and are at higher risk of not being employed than those born in Sweden with native-born parents. Differences in human capital characteristics cannot explain these results. Other theories, which stress the effect of discriminatory behaviour and the power of social network composition, are discussed as alternative interpretations. Having one native-born parent is considered to be important to labour market success. However, having a native-born father rather than a native-born mother is associated with better labour-market achievement."

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