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

Hanna Onerva Pesola (), Matti Sarvimäki () and Tuomo Virkola
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Hanna Onerva Pesola: VATT Institute for Economic Reserach, Helsinki
Matti Sarvimäki: Aalto University
Tuomo Virkola: VATT, Helsinki

No 18012, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: integration; immigration (search for similar items in EconPapers)
JEL-codes: F22 J31 J61 (search for similar items in EconPapers)
Date: 2025-07
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