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Migration and individual earnings in Finland: a regional perspective

  • Pekkala, Sari

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 suppose

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa99pa094.

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Date of creation: Aug 1999
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Handle: RePEc:wiw:wiwrsa:ersa99pa094
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  1. 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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  8. 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.
  9. Vijverberg, Wim P M, 1995. "Dual Selection Criteria with Multiple Alternatives: Migration, Work Status, and Wages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 159-85, February.
  10. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc.
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  13. Jari Jouni Kalervo Ritsila & Hannu Tervo, 1998. "Regional differences in migratory behaviour in Finland," ERSA conference papers ersa98p39, European Regional Science Association.
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