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Paths to integration: earnings, skill investments, and outmigration across immigrant admission categories

Year: 2025

Type: article

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 European Union 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.

Source: Scandinavian Journal of Economics

DOI: 10.1111/sjoe.70000

Authors: Hanna Pesola, Matti Sarvimäki, Tuomo Virkola

Institutions: VATT Institute for Economic Research, Aalto University

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,470