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The Number of Employed Immigrants Has Increased in Finland

Author

Listed:
  • Kangasharju, Aki
  • Kauhanen, Antti
  • Kalmbach, Aino
  • Valkonen, Tarmo

Abstract

The decline of working age population makes it difficult to find employees. In this report we analyze the evolution of immigrant employment in Finland and the fiscal impact of immigration as well as the effect on the labor market. We show that the number of employed immigrants as well as immigrants’ employment rate in Finland has increased. We review the economic impacts of immigration. We show that the fiscal impact of immigration depends heavily on the characteristics of immigrants and the time of immigration and therefore no general conclusions can be made on the economic impact. However, we show that full-time employees pay more taxes than receive direct income transfers and therefore their direct fiscal impact is positive. This is true also for employees employed at the lowest pay grades in the collective agreements.

Suggested Citation

  • Kangasharju, Aki & Kauhanen, Antti & Kalmbach, Aino & Valkonen, Tarmo, 2023. "The Number of Employed Immigrants Has Increased in Finland," ETLA Reports 136, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:136
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    References listed on IDEAS

    as
    1. Robert Rowthorn, 2008. "The fiscal impact of immigration on the advanced economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 561-581, Autumn.
    2. Mette Foged & Giovanni Peri, 2016. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 1-34, April.
    3. Anthony Edo, 2019. "The Impact Of Immigration On The Labor Market," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 922-948, July.
    4. 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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    More about this item

    Keywords

    Immigration; Employment; Public finance;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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