DETERMINANTS OF MIGRATION IN THE NORDIC LABOR-MARKET

"Migration flows in the integrated Nordic labor market are heavily dominated by Finnish migration to Sweden. Differences in migration behavior across the Nordic populations are identified. Elasticities of migration are obtained from a logistic human capital model estimated as seemingly unrelated regressions. Differences in migration behavior are shown to exist, but the elasticities are not systematically higher for the Finns as could be expected. The domination of Finnish migration to Sweden is instead explained by real wage differences and since these have narrowed, major migration flows should not be expected in the future, unless large differences in labor market performance arise." excerpt