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Labor Market Integration of Refugees in Finland

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  • Sarvimäki, Matti

Abstract

This paper documents Finland’s policy response to the increase in asylum applications in 2015 and the labor market performance of earlier immigrants living in Finland. Immigrants born in Afghanistan, Iraq and Somalia had substantially lower employment rates, earned less and received more social benefits than other immigrant groups or natives in 1990–2013. The immigrant-native gaps in employment and earnings decreased over time but remained large. Ten years after arriving in Finland, the average earnings of immigrant men from these countries were only 22–38 percent of the average earnings of native men of the same age. The relative earnings of women were even smaller. Furthermore, the difference in equivalence-scaled social benefits persisted over time despite the narrowing of earnings gaps.

Suggested Citation

  • Sarvimäki, Matti, 2017. "Labor Market Integration of Refugees in Finland," Research Reports 185, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:185
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    File URL: https://www.doria.fi/handle/10024/149407
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    References listed on IDEAS

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    1. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
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    3. Matti Sarvimäki, 2011. "Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 665-688, September.
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    1. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2018. "Job Loss and Immigrant Labour Market Performance," Economica, London School of Economics and Political Science, vol. 85(337), pages 124-151, January.
    2. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2022. "(The Struggle for) Refugee integration into the labour market: evidence from Europe [Cashier or consultant? Entry labor market conditions, field of study, and career success]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 351-393.
    3. Ansala, Laura & Åslund, Olof & Sarvim¨aki, Matti, 2018. "Immigration history, entry jobs, and the labor market integration of immigrants," Working Paper Series 2018:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2017. "Immigrant labor market integration across admission classes," RF Berlin - CReAM Discussion Paper Series 1702, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Demirci, Murat & Kırdar, Murat Güray, 2023. "The labor market integration of Syrian refugees in Turkey," World Development, Elsevier, vol. 162(C).
    6. Ognjen Obućina & Ilari Ilmakunnas, 2020. "Poverty and Overcrowding among Immigrant Children in an Emerging Destination: Evidence from Finland," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(6), pages 2031-2053, December.
    7. Lens, Dries & Marx, Ive & Vujic, Suncica, 2018. "Is Quick Formal Access to the Labor Market Enough? Refugees' Labor Market Integration in Belgium," IZA Discussion Papers 11905, Institute of Labor Economics (IZA).
    8. Ademmer, Esther & Barslund, Mikkel & Benček, David & Di Salvo, Mattia & Groll, Dominik & Hoxhaj, Rezart & Kadkoy, Omar & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & Pizzu, 2018. "2018 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Flexible Solidarity: A comprehensive strategy for asylum and immigration in the EU," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182240.
    9. Rosa Weber & Jan Saarela, 2023. "Who Migrates and Who Returns in a Context of Free Mobility? An Analysis of the Reason for Migration, Income and Family Trajectories," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-28, December.
    10. Peter Haan & Martin Kroh & Kent Troutman, 2017. "Employment and Human Capital Investment Intentions among Recent Refugees in Germany," SOEPpapers on Multidisciplinary Panel Data Research 937, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2019. "Employment Gaps Between Refugees, Migrants and Natives: Evidence from Austrian Register Based Labour Market Data," wiiw Working Papers 167, The Vienna Institute for International Economic Studies, wiiw.
    12. F Baum, Christopher & Lööf, Hans & Stephan, Andreas & F. Zimmermann, Klaus, 2020. "Productivity of refugee workers and implications for innovation and growth," Working Paper Series in Economics and Institutions of Innovation 485, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 24 Mar 2022.
    13. Dries Lens & Ive Marx & Sunčica Vujić, 2017. "Integrating (former) asylum seekers into the Belgian labour market. What can we learn from the recent past?," Working Papers 1710, Herman Deleeck Centre for Social Policy, University of Antwerp.
    14. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2017. "The (Struggle for) Labour Market Integration of Refugees: Evidence from European Countries," RF Berlin - CReAM Discussion Paper Series 1716, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    15. Peter Haan & Martin Kroh & Kent Troutman, 2017. "Employment and Human Capital Investment Intentions among Recent Refugees in Germany," Discussion Papers of DIW Berlin 1692, DIW Berlin, German Institute for Economic Research.

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