Effects of passing taxi license exams

The graph shows how the monthly income of foreign and domestic born in Sweden is affected by passing the written taxi driver tests.

Click on the image to make it larger.

The graph illustrates how passing the written exams for a taxi driver's license affects monthly incomes for immigrants and natives in Sweden.

Income increases over time

  • Immigrants increase their monthly income by 47 percent after two years compared to two years before passing the exams.
  • The equivalent change for natives is an increase by 10 percent.

Immediate positive effect

  • Both immigrants and natives have experienced negative employment trends before becoming taxi drivers.
  • Passing the written taxi exams has an immediate positive effect on employment.
  • One year later, approximately 60 percent of individuals in both groups have been employed by a taxi firm.

About the article

Title: "Ekonomiska effekter av taxikörkort"

Authors: Mounir Karadja and Anton Sundberg

Journal: IFAU Report

Learn more about the research

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