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Migration and Individual Earnings in Finland: A Regional Perspective

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  • Sari Pekkala

Abstract

Attention has recently focused on the rapidly increasing pace and regional concentration of migration in Finland. Most migrants head to the growth centre regions located mainly in the southern parts of the country. This study investigates the effects of moving on individuals, and compares the post-move incomes across the Finnish regions. Significant regional differences in the types of inmigrants and their incomes are observed. The results indicate that, in general, migrants tend to benefit from moving in the form of higher post-move incomes. In particular, individuals who move to relatively rich regions have higher levels of income succeeding the move and also experience faster income growth. Those moving to poorer regions generally have lower incomes, yet moderate income growth. These findings hence imply that both the actual move and the choice of destination region affect individual incomes. Dans les annees recentes, l'attention porte sur l'augmentation importante du taux de changement et de la concentration regionale de la migration en Finlande. La plupart des migrants vont aux regions dotees des poles de croissance situees surtout dans le sud du pays. L'etude cherche a examiner les retombees sur les personnes physiques de ce deplacement et a comparer a travers les regions finlandaises les revenus que touchent les migrants avant et apres leur deplacement. Il est a noter d'importantes differences regionales dans les migrants et les revenus qu'ils touchent. Les resultats laissent voir qu'en regle generale les migrants ont tendance a profiter du deplacement sous forme d'une augmentation de leur revenu. En particulier, ceux qui vont aux regions relativement riches jouissent non seulement d'une augmentation de leur salaire, mais aussi d'un taux de croissance plus elevede leur revenu. Ceux qui vont aux regions plus pauvres touchent generalement un revenu moins eleve, et pourtant le taux de croissance de leur revenu reste modere. Ainsi, ces resultats laissent supposer que le deplacement en soi et le choix de zone d'accueil influent sur le revenu des personnes physiques. Das rasch zunehmende Tempo und die regionale Konzentration der Wanderung in Finnland hat in letzter Zeit Aufmerksamkeit erregt. Die meisten Wanderer wenden sich Wachstumszentren in Regionen zu, die sich vorwiegend in den sudlichen Landesteilen befinden. Diese Studie untersucht die Auswirkungen des Umzugs auf Individuen, und vergleicht Einkommen nach dem Umzug in allen finnischen Regionen. Es werden signifikante regionale Unterschiede im Typ der Einwanderer und ihrer Einkommen beobachtet. Die Ergebnisse zeigen, dass Wanderer im allgemeinen dazu neigen, vom Umzug in Form hoherer Einkommen zu profitieren. Besonders solche, die in verhaltnismassig wohlhabende regionen ziehen, erfreuen sich nach dem Umzug hoherer Gehaltsstufen und einer beschleunigten Einkommenszunahme. Diejenigen, die in armere Gegenden umziehen, haben im allgemeinen niedrigere Einkommen, jedoch massige Einkommenssteigerurig. Die Befunde legen daher nahe, dass sich sowohl der eigentliche Umzug wie auch die Wahl der der Zielregion auf individuelle Einkommen auswirkt.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 36 (2002)
Issue (Month): 1 ()
Pages: 13-24

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Handle: RePEc:taf:regstd:v:36:y:2002:i:1:p:13-24

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Related research

Keywords: Migration; Regional Economy; Taxable Incomes; Income Growth;

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References

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  1. Aki Kangasharju, 1998. "Growth and convergence in Finland : effects of regional features," Finnish Economic Papers, Finnish Economic Association, vol. 11(1), pages 51-61, Spring.
  2. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
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  4. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
  5. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  6. Vijverberg, W.P.M., 1991. "Dual selection criteria with multiple alternatives: migration, work status, and wages," Papers 78, World Bank - Living Standards Measurement.
  7. Ghatak, Subrata & Levine, Paul & Price, Stephen Wheatley, 1996. " Migration Theories and Evidence: An Assessment," Journal of Economic Surveys, Wiley Blackwell, vol. 10(2), pages 159-98, June.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Lee, Lung-Fei, 1982. "Some Approaches to the Correction of Selectivity Bias," Review of Economic Studies, Wiley Blackwell, vol. 49(3), pages 355-72, July.
  10. Jari Jouni Kalervo Ritsila & Hannu Tervo, 1998. "Regional differences in migratory behaviour in Finland," ERSA conference papers ersa98p39, European Regional Science Association.
  11. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  12. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
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  14. Schaffner, Julie Anderson, 1998. "Generating conditional expectations from models with selectivity bias: comment," Economics Letters, Elsevier, vol. 58(3), pages 255-261, March.
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Cited by:
  1. Nivalainen, Satu, 2000. "Migration And Post-Move Employment In Two-Earner Families," ERSA conference papers ersa00p47, European Regional Science Association.
  2. Andrés Rodríguez-Pose & Tobias Ketterer, 2011. "Do we follow the money? The drivers of migration across regions in the EU," ERSA conference papers ersa11p191, European Regional Science Association.
  3. Rosa Sanchis-Guarner & Enrique Lopez-Bazo, 2006. "Are Skilled Workers More Attracted to Economic Agglomerations?," ERSA conference papers ersa06p120, European Regional Science Association.
  4. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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