Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland
AbstractAbstract: I study the assimilation of immigrants to the Finnish labor market and welfare system. The initial immigrant-native earnings gaps are large. While longterm immigrants experience a rapid earnings growth, only men from OECD countries converge to natives' earnings. Among all immigrant groups earnings grow predominantly due to improving employment rates rather than wage growth. Earnings profiles for temporary immigrants are flat. Furthermore, direct study of the use of social benefits suggests that immigrants learn to use the welfare system gradually. In particular, non-OECD households substantially increase their use of social assistance during their first five years in the country despite simultaneously doubling their earnings. JEL classification: J61, J31, F22
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Bibliographic InfoPaper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 454.
Date of creation: 14 Oct 2008
Date of revision:
Other versions of this item:
- 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, 09.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-EEC-2008-11-11 (European Economics)
- NEP-LAB-2008-11-11 (Labour Economics)
- NEP-MIG-2008-11-11 (Economics of Human Migration)
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