How Does Immigration Affect the Finnish Economy?

Antti Kauhanen

No 177, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract Immigration affects the Finnish economy in various ways, including through the labour market, productivity, and public finances. The economic impact depends primarily on the skills of the newcomers and the success of their integration. Work-based and highly educated immigration strengthens employment, productivity, and tax revenues rapidly, whereas the economic benefits of humanitarian immigration tend to be weaker. Immigration increases the supply of labour, supports business growth and innovation, and expands exports. In terms of public finances, the effects differ significantly between groups, but integration measures play a key role: targeted language training, recognition of skills, and swift access to the labour market improve employment and reduce the need for income transfers, as well as deliver benefits across generations. In the long term, Finland needs immigration to stabilise the working-age population and safeguard the conditions for economic growth as the population ages and the workforce declines.

Keywords: Immigration; Integration; Labour market; Public finances; Economic impacts (search for similar items in EconPapers)
JEL-codes: H53 J15 J61 (search for similar items in EconPapers)
Pages: 6 pages
Date: 2026-03-23
New Economics Papers: this item is included in nep-mig
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