Chapter in:
Tarmo Valkonen and Vesa Vihriälä (eds.), The Nordic model – challenged but capable of reform. Nordic Council of Ministers, TemaNord, 2014.
DOI: 10.6027/TN2014-531
Introduction/abstract:
This chapter first provides a descriptive overview of the recent migration flows to the Nordic countries highlighting the significant changes that occurred in response to the EU expansion in 2004, addressing the possible incentives embedded in the large differences in earnings levels and social insurance institutions between the Nordic and Eastern European countries. We then focus more closely on labour immigrants to Norway, and document the labour market performance of post-EU accession Eastern European labour migrants during their first years in the country by means of longitudinal administrative micro data. We examine in greater detail the migrants that came to Norway from Poland and the Baltic States between 2004 and 2007, following accession but prior to the onset of the financial crisis. As the financial crisis hit the Norwegian labour market in late 2008, we study how the negative labour demand shock affected subsequent employment and earnings patterns and the propensity to leave Norway. Did the financial crisis impinge on migrant inflows? How did labour migrants present in Norway at the time of the crisis adjust to the economic downturn; did migrant workers directly affected by the economic crisis stay and collect unemployment benefits,
or did they return migrate to their home country? Did the crisis affect long-term economic outcomes such as employment, earnings, and welfare benefit uptake among the labour immigrants?
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