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

Mari Kangasniemi and Merja Kauhanen ()
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Merja Kauhanen: Labour Institute for Economic Research

No 2013001, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

Abstract: 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.

Keywords: migration; temporary migration; immigrant assimilation; employment; earnings (search for similar items in EconPapers)
JEL-codes: J15 J61 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-lab and nep-mig
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Related works:
Working Paper: Who leaves and who stays? Outmigration of Estonian immigrants from Finland and its impact on economic assimilation of Estonian immigrants in Finland (2012)
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