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Intergenerational Spillovers of Integration Policies: Evidence from Finland’s Integration Plans

Matti Sarvimäki and Hanna Pesola
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Matti Sarvimäki: Aalto University School of Business, VATT and Helsinki GSE
Hanna Pesola: VATT Institute for Economic Research and Helsinki GSE

Authors registered in the RePEc Author Service: Matti Sarvimäki ()

No 2212, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

Abstract: This paper shows that an integration policy aimed at unemployed adult immigrants generated positive spillovers for their children. Our research design builds on a discontinuity in the phase-in-rule of Finland’s 1999 reform that introduced integration plans—a new approach for allocating unemployed immigrants to active labor market policies. We find that parents’ integration plans substantially improved their children’s grades and educational attainment and reduced their time out of employment, education, or training. Our examination of potential mechanisms suggests that integration plans increased parents’ earnings, employment and exposure to native colleagues and pushed their children to better schools.

Keywords: Immigrants; integration policy; intergenerational effects (search for similar items in EconPapers)
JEL-codes: H53 J13 J61 J68 (search for similar items in EconPapers)
Date: 2022-05
New Economics Papers: this item is included in nep-int and nep-ure
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