Sara Värn

Current Research Projects:

Self-employment and labor market integration of young immigrants: A field Experiment in Sweden

Author: Sara Värn

Abstract: In many countries, immigrants turn to self-employment to enter the labor market, and policymakers often present it as a stepping stone to regular employment. However, credible evidence on whether self-employment improves employment prospects remains scarce. This paper tests the stepping-stone hypothesis using a correspondence experiment in which fictitious applications were randomly assigned to signal self-employment, wage employment, or unemployment. Applicants with self-employment experience were more than twice as likely to receive interview requests as otherwise identical unemployed

applicants. Interview callback rates for self-employed and wage-employed were similar, suggesting that when wage employment is hard to find, self-employment can serve as an alternative route into regular employment for young immigrants.

Can Work-Integrating Social Enterprises Improve Labor Market Attachment for Marginalized Groups?

Author: Sara Värn

Abstract: Unemployment within the EU and in many OECD countries disproportionately affects disadvantaged individuals, such as the long-term unemployed, or those with physical or mental health issues. Conventional labor market measures are often insufficient to help them, especially when demand for low-skilled labor decreases. Social enterprises are often claimed, in the policy literature, to empower vulnerable groups, but little is known about whether job training in social enterprises actually improves the attachment to the labor market. The purpose of this study is to assess whether social economy actors facilitate the progression of disadvantaged workers toward employment.

Equal Pay Laws and the Gender Pay Gap:  Evidence from Swedish Administrative Data 

Authors: Lina Aldén, Anne Boschini, Samuel Mann, and Sara Värn 

Abstract: Gender-based equal pay laws aim to reduce wage disparities between men and women, yet evidence of their effectiveness remains mixed. Using Swedish administrative data and a difference-in-differences approach, we analyze the impact of equal pay legislation on relative earnings. Our findings provide robust evidence that the law increased women’s earnings relative to men’s. We explore potential mechanisms and demonstrate the role of occupational segregation, occupational mobility, early vs later career wage growth, and access to male-dominated jobs. 

Early Labor-Market Integration of Immigrant Women with Low Levels of Formal Education: Evidence from an Experiment in Sweden

Authors: Johan Egebark, Magnus Rödin, Sara Värn

Abstract: Refugee women with low levels of formal education face an elevated risk of long-term unemployment and social exclusion compared with other immigrant groups. Early integration programs targeting this population are therefore critical for improving labor-market attachment. This project evaluates a novel integration initiative jointly developed and implemented by the City of Gothenburg and the Swedish Public Employment Service. The program offers job seekers a sequenced and coherent package of support, including Swedish-language instruction, career counseling, and work placements in social enterprises. It targets recently resettled refugee women with little or no formal schooling. The aim of the intervention is to help participants progress step by step toward stable integration into the labor market.