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Paths to Integration: Earnings, Skill Investments, and Outmigration Across Immigrant Admission Categories

Author

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  • Pesola, Hanna Onerva

    (VATT Institute for Economic Reserach, Helsinki)

  • Sarvimäki, Matti

    (Aalto University)

  • Virkola, Tuomo

    (VATT, Helsinki)

Abstract

We document substantial heterogeneity in labor market integration, skill investments, and outmigration across immigrant admission categories. Using newly available data on residence permits in Finland, we establish four facts. First, there are large initial differences in employment and earnings across labor, family, refugee, student, and EU migrants. Second, these differences diminish substantially over time. Third, the groups make distinct investments in country-specific and general skills. Fourth, both the prevalence of and selection into outmigration vary widely across admission categories. These findings align with models where investments in skills depend on the expected length of stay in the host country.

Suggested Citation

  • Pesola, Hanna Onerva & Sarvimäki, Matti & Virkola, Tuomo, 2025. "Paths to Integration: Earnings, Skill Investments, and Outmigration Across Immigrant Admission Categories," IZA Discussion Papers 18012, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18012
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • 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

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