Earnings development among new immigrants in Finland: does a native-born partner enhance economic integration?

Abstract Many studies have analysed the role of individual characteristics on the labour market outcomes of immigrants. However, there is only limited evidence on how an immigrant’s partnership status and intermarriage with a native-born person are associated with earnings development. Partnerships in general can be considered a proxy for social capital, productivity, and characteristics valued in the labour market. A partnership with a native person is also indicative of sociocultural resources, accomplished integration, and an intention to remain in the country as well as a possible reason for migration. Our study contributes to understanding the link between intermarriage and earnings with evidence from a Nordic perspective and based on unique register data spanning from 2004 to 2018. We employ growth curve models and analyse earnings and employment development in the years following entry to Finland among seven different immigrant groups and separately for men and women. The results demonstrate that the role of having a native-born partner varies according to the country of origin and gender. In general, those with a native-born partner upon arrival in Finland have a more positive earnings development over time. Long observation period is necessary to reveal ineteresting differences between groups.