The Nordic Labor Market and Migration

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 particul...

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Bibliographic Details
Main Author: Ho, Giang
Other Authors: Shirono, Kazuko
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Nordic Labor Market and Migration  |c Giang Ho, Kazuko Shirono 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2015 
300 |a 45 pages 
651 4 |a Sweden 
653 |a Population & demography 
653 |a Migration 
653 |a Demographic Trends, Macroeconomic Effects, and Forecasts 
653 |a Labor Economics Policies 
653 |a Labour; income economics 
653 |a Demographic Economics: General 
653 |a International Migration 
653 |a Migration, immigration & emigration 
653 |a Non-labor Discrimination 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Emigration and immigration 
653 |a Labor markets 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Demand and Supply of Labor: General 
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653 |a Labor 
653 |a Population and demographics 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Demography 
653 |a Labor market 
653 |a Institutions and the Macroeconomy 
653 |a Population 
653 |a Wages 
653 |a Unemployment rate 
653 |a Intergenerational Income Distribution 
653 |a Emigration and Immigration 
653 |a Economics of Minorities and Races 
653 |a Employment 
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520 |a 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