Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland

24 Pages Posted: 24 Aug 2011

See all articles by Matti Sarvimäki

Matti Sarvimäki

Aalto University - Department of Economics; Government of the Republic of Finland - VATT Institute for Economic Research

Date Written: September 2011

Abstract

This paper documents the economic performance of immigrants in a country characterized by an extensive welfare state and a short immigration history. Upon arrival, immigrants to Finland have substantially lower employment rates than comparable natives. While they experience rapid employment growth, only men from OECD countries catch up with natives. Despite the persisting employment and earnings differences between non‐OECD immigrants and natives, the differences in income transfers disappear in roughly 20 years. The immigrant–native employment gaps are larger in Finland than in Australia, Canada, or the US.

Keywords: Integration, minorities, employment, earnings, benefits, J61, J31, F22

Suggested Citation

Sarvimäki, Matti, Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland (September 2011). The Scandinavian Journal of Economics, Vol. 113, Issue 3, pp. 665-688, 2011. Available at SSRN: https://ssrn.com/abstract=1915847 or http://dx.doi.org/10.1111/j.1467-9442.2011.01652.x

Matti Sarvimäki (Contact Author)

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

HOME PAGE: http://www.aalto-econ.fi/sarvimaki

Government of the Republic of Finland - VATT Institute for Economic Research ( email )

Arkadiankatu 7
P.O Box 1279
Helsinki, FIN-00531
Finland

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