Slipping through the Cracks of a Welfare State: Children of Immigrants in Finland

VATT Institute for Economic Research Working Papers No. 72

35 Pages Posted: 7 Apr 2016

See all articles by Laura Ansala

Laura Ansala

Urban Research and Statistics, City of Helsinki

Ulla Hamalainen

Social Insurance Institution of Finland

Matti Sarvimäki

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

Date Written: March 22, 2016

Abstract

We document large differences in educational attainment, criminal sentences and use of psychotropic medication between the children of immigrants and natives living in Finland. Among the offspring of immigrants from the OECD countries and the former Soviet Union, the disadvantage in education reverses and differences in criminal sentences disappear once we condition on parental income and location of residence. In contrast, large gaps remain for the children of immigrants from other regions, even conditional on background characteristics. Furthermore, the children of immigrants from all source areas are substantially less likely to use psychotropic medication than the offspring of natives despite their higher self-reported mental health problems. These results suggest that institutions designed to help disadvantaged natives do not fully reach the children of immigrants.

Keywords: children of immigrants, second-generation immigrants, education, crime, health

JEL Classification: I140,I210,J150

Suggested Citation

Ansala, Laura and Hamalainen, Ulla and Sarvimäki, Matti, Slipping through the Cracks of a Welfare State: Children of Immigrants in Finland (March 22, 2016). VATT Institute for Economic Research Working Papers No. 72. Available at SSRN: https://ssrn.com/abstract=2753976 or http://dx.doi.org/10.2139/ssrn.2753976

Laura Ansala

Urban Research and Statistics, City of Helsinki ( email )

Helsinki
Finland

Ulla Hamalainen

Social Insurance Institution of Finland ( email )

Nordenskiöldinkatu 12
00250 Helsinki
Finland

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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