Is International Labour Mobility a Threat to the Welfare State? Evidence from Finland in the 1990s

Jukka Pirttilä

Finnish Economic Papers, 2004, vol. 17, issue 1, 18-34

Abstract: This paper assesses the factors behind Finnish emigration and return migration in the 1990s. Logit-analysis using combined micro data from the labour force survey and emigration statistics in 1990–1999 reveals that, when controlling for other background characteristics, highly educated individuals are 5 times more prone to emigrate than individuals with secondary education only. There is no similar difference in the return migration propensities within individuals of different educational levels. Panel-data analysis based on country-level data on the migration destination countries of the (even highly educated) Finnish emigrants in 1990–2000 reveals, however, that migration has not been directed towards countries with low tax rates. These findings therefore suggest that while there is some evidence that the Finnish welfare state may suffer from the selection of emigration incidence on highly educated workforce, emigration has mainly been determined by other factors than potential tax competition on mobile labour.

JEL-codes: F22 H77 J61 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.taloustieteellinenyhdistys.fi/images/st ... ep12004_pirttila.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:17:y:2004:i:1:p:18-34

Access Statistics for this article

More articles in Finnish Economic Papers from Finnish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Secretary ( this e-mail address is bad, please contact ).