Labor Market Integration of Refugees in Finland

VATT Research Reports 185

28 Pages Posted: 22 Feb 2017

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: February 21, 2017

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.

Keywords: integration, employment, immigrants, refugees, asylum seekers

JEL Classification: J61, J31

Suggested Citation

Sarvimäki, Matti, Labor Market Integration of Refugees in Finland (February 21, 2017). VATT Research Reports 185. Available at SSRN: https://ssrn.com/abstract=2921095 or http://dx.doi.org/10.2139/ssrn.2921095

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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