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The impact of immigration on Finland’s unemployment rate
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School of Business |
Bachelor's thesis
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en
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23
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This thesis investigates the relationship between immigration and regional unemployment in Finland using annual panel data for 18 NUTS 3 regions over the period 2010–2024. Immigration is measured as the share of working-age immigrants, and its effect on unemployment is estimated using pooled OLS and fixed effects models controlling for GDP per capita and unobserved regional heterogeneity.
The baseline OLS results indicate a negative and statistically significant association. However, this relationship disappears once region and time fixed effects are introduced, with coefficients becoming small and statistically insignificant across all preferred specifications. Robustness checks using lagged immigration and a dynamic specification with lagged unemployment confirm that the findings are stable and not driven by timing assumptions or persistence in unemployment.
The results provide no evidence of a statistically significant relationship between immigration and regional unemployment in Finland.