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Who leaves and who stays? Outmigration of Estonian immigrants from Finland and its impact on economic assimilation of Estonian immigrants in Finland

  • Mari Kangasniemi

    ()

    (Labour Institute for Economic Research)

  • Merja Kauhanen

    ()

    (Labour Institute for Economic Research)

Registered author(s):

    This paper investigates outmigration of Estonian immigrants from Finland and their economic assimilation. We use a register-based panel data set on new Estonian immigrants from years 2000-2006 to analyse the determinants of outmigration in a duration model framework and to examine the economic assimilation of Estonian immigrants in terms of wages and employment. The results show that earnings have a negative coefficient in the estimated hazard function, in particular when interacted with the second to the fourth year of migration spells. In terms of employment, there is a considerable employment differential between immigrants and natives in the first year of immigration spells, but this gap narrows over time even at the longest observed durations, though changes in some of the earlier years are minimal. Employment assimilation also occurs within individual work histories. For wages, the initial immigrant-native gap is heavily dependent on the age at arrival and gender. Though immigrants initially gain in terms of wage, this trend fades after a few years. When we exclude those who are identified as outmigrants we observe largely similar patterns.

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    Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2013001.

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    Date of creation: Jan 2013
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    Handle: RePEc:nor:wpaper:2013001
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    1. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," Economics Discussion / Working Papers 02-08, The University of Western Australia, Department of Economics.
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    14. Matti Sarvimäki, 2008. "Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland," Discussion Papers 454, Government Institute for Economic Research Finland (VATT).
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    16. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
    17. 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.
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