IMF Working Papers

The Nordic Labor Market and Migration

By Giang Ho, Kazuko Shirono

December 4, 2015

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Giang Ho, and Kazuko Shirono. The Nordic Labor Market and Migration, (USA: International Monetary Fund, 2015) accessed September 19, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The large influx of migrants to Nordic countries in recent years is challenging the adoptability of Nordic labor market institutions while also adding to potential growth. This paper examines the trends, economic drivers, and labor market implications of migration to Nordic countries with a particular focus on economic migration as distinct from the recent large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are influenced by both cyclical and structural factors. Although migration helpfully dampens overheating pressures during periods of strong demand, and over the longer term will cushion the decline in labor supply from population aging, in the near-term unemployment can rise, especially among the young and lower-skilled. The analysis highlights the need to adapt Nordic labor market institutions in a manner that better facilitates the integration of migrants into employment. In particular, greater wage flexibility at the firm level and continued strong active labor market measures will help improve labor market outcomes among immigrants.

Subject: Labor, Labor markets, Migration, Population and demographics, Unemployment, Unemployment rate

Keywords: Denmark, EU labor market, EU migration, Europe, Finland, Global, Host country labor market, Labor market, Labor market development, Labor market duality, Labor market experience, Labor market outcome, Labor markets, Migration, Migration flow, Migration inflow, Migration literature, Migration rate, Net migration rate, Nordic countries, Nordic model, Norway, Sweden, Unemployment, Unemployment rate, Wage differential, WP

Publication Details

  • Pages:

    45

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2015/254

  • Stock No:

    WPIEA2015254

  • ISBN:

    9781513528366

  • ISSN:

    1018-5941