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The Nordic Labor Market and Migration

Author

Listed:
  • Giang Ho
  • Ms. Kazuko Shirono

Abstract

The large influx of migrants to Nordic countries in recent years is challenging the adoptability of Nordic labor market institutions while also adding to potential growth. This paper examines the trends, economic drivers, and labor market implications of migration to Nordic countries with a particular focus on economic migration as distinct from the recent large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are influenced by both cyclical and structural factors. Although migration helpfully dampens overheating pressures during periods of strong demand, and over the longer term will cushion the decline in labor supply from population aging, in the near-term unemployment can rise, especially among the young and lower-skilled. The analysis highlights the need to adapt Nordic labor market institutions in a manner that better facilitates the integration of migrants into employment. In particular, greater wage flexibility at the firm level and continued strong active labor market measures will help improve labor market outcomes among immigrants.

Suggested Citation

  • Giang Ho & Ms. Kazuko Shirono, 2015. "The Nordic Labor Market and Migration," IMF Working Papers 2015/254, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/254
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    Cited by:

    1. International Monetary Fund, 2016. "Austria: Selected Issues," IMF Staff Country Reports 2016/051, International Monetary Fund.
    2. Obadia Kyetuza Bishoge & Benatus Norbert Mvile, 2020. "The “resource curse” from the oil and natural gas sector: how can Tanzania avoid it in reality?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(3), pages 389-404, October.
    3. Ohlert, Clemens & Bruttel, Oliver, 2018. "Auswirkungen des gesetzlichen Mindestlohns auf die Beschäftigungssituation von Geflüchteten : Stand der Forschung, methodische Ansätze und Erschließung von Datenquellen," FDZ Methodenreport 201807_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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