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In most of the OECD countries, non-western immigrants face a larger risk of unemployment than non-immigrants. To what degree does this also apply to persons who have graduated from colleges and universities in their new country? The results of analyses concerning unemployment experience as well as duration of unemployment show significant differences between non-western immigrant graduates and non-immigrant graduates in Norway after controlling for a number of personal and educational characteristics. The findings also indicate that the less favourable situation of non-western immigrants shortly after graduation explains why a larger proportion of this group face problems a few years later than is the case of the majority group. The results are discussed in the light of theories of statistical discrimination, search theory and theory of history dependence in unemployment. Unemployment shortly after graduation has an effect on the risk of unemployment three years later, but this applies only to the immigrants and not to non-immigrants.

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