The Number of Employed Immigrants Has Increased in Finland

Aki Kangasharju, Antti Kauhanen, Aino Kalmbach and Tarmo Valkonen

No 136, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: Abstract The decline of working age population makes it difficult to find employees. In this report we analyze the evolution of immigrant employment in Finland and the fiscal impact of immigration as well as the effect on the labor market. We show that the number of employed immigrants as well as immigrants’ employment rate in Finland has increased. We review the economic impacts of immigration. We show that the fiscal impact of immigration depends heavily on the characteristics of immigrants and the time of immigration and therefore no general conclusions can be made on the economic impact. However, we show that full-time employees pay more taxes than receive direct income transfers and therefore their direct fiscal impact is positive. This is true also for employees employed at the lowest pay grades in the collective agreements.

Keywords: Immigration; Employment; Public finance (search for similar items in EconPapers)
JEL-codes: E24 J61 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2023-03-08
New Economics Papers: this item is included in nep-int, nep-mig and nep-ure
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