Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Immigrants’ contribution and share: multilevel analysis of migrant labour contribution to productivity, welfare and income in Finland
Issue: Vol. 12, No 4, 2019
Published date: 12-2019 (print) / 12-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Oxana Krutova
University of Tampere, Finland
Keywords: immigrant labour, income redistribution, aggregate production function approach, multilevel modelling, economic performance
DOI: 10.14254/2071-789X.2019/12-4/1
Index PUBMS: 85a5c5a5-370d-11ea-b360-fa163e0fa1a0
Language: English
Pages: 21-42 (22)
JEL classification: J31, J15, O15

In this paper we investigate how economic growth and productivity, when adjusted for the influence of welfare state institutions, affects the redistribution of incomes for employed immigrants and natives in Finland. We used the European Union Statistics on Income and Living Conditions (EU-SILC) cross-sectional data for the period from 2004 to 2016 selected for Finland. Based on multilevel modelling and an aggregate production function approach, we calculate the elasticity estimates for incomes as adjusted for the influence of education, occupation and industry and social benefits. The results indicate high differentiation of incomes between immigrants and natives, while showing lower incomes for immigrants. Social benefits slightly decrease incomes, while for immigrants this negative effect is even more pronounced than it is for natives. Economic growth and increase in productivity is associated with an increase in the incomes of both immigrants and natives with low and medium education and of clerical and manual labour occupations among immigrants. Despite the widespread perception that ‘immigrant hordes’ have an adverse effect on the employment opportunities of natives and their incomes, the research concludes that welfare state benefits in combination with the influence from macroeconomic regulators and productivity increase incomes for immigrants.


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