Browsing by Subject "Unemployment Rate"

This paper examines the effect of immigration on the native unemployment rate in Finland. A number of different estimations strategies are applied to discover the impact using the data from the 19 regions of Finland over a period of 16 years, from 2000 to 2015. The study also takes advantage of employing the share of foreigners in the population as the instrument in the estimation process. Other variables in the model include GDP per capita, net inter-municipal migration and educational attainment share of the labor force. The results indicate that changes in the share of inflow of immigrants in the labor force has a significant negative effect on the unemployment rates of natives. However, possible limitations, like failure to apply a skill-based approach of analysis, may have produced such results and they are also discussed in the paper.