Does Similar Human Capital lead to Comparable Employment Outcomes? An Experimental Follow-up Study on the Reception of Second-Generation Immigrants in the Finnish Job Market

Application summary

This follow-up experimental study seeks to answer to what extent the existing significant differences in native-immigrant labour-market outcomes are the consequence of immigrants' weak human-capital credentials and to what degree such differential access to employment chances can be attributed to exclusionary practices in selection procedures. Using the correspondence methodology by answering 2000 job ads by five job seekers of Finnish, English, Iraqi, Russian and Somali origin in various economic sectors, it uncovers whether immigrant applicants face greater unfavourable treatment in hiring even if they possess identical human capital as their Finnish counterpart. The study is important from a number of perspectives: 1) It will concretely show whether the trends observed towards immigrants’ hiring have remained stable, improved or worsened between 2016 and 2024. To assess and monitor changes in these trends is crucial, since a failure to integrate into the labour market can ultimately hamper a successful integration into society as a whole; 2) the Programme of Prime Minister Petteri Orpo's Government explicitly aims to improve the employment of various vulnerable groups including immigrants. For this Programme to succeed, up-to-date empirical information about how immigrants are being received in the job market is indispensable. The follow-up study provides a timely opportunity to offer this information; 3) The Ministry of Economic Affairs and Employment has implemented the working life diversity programme between 2021-2023. It especially aimed to increase employers' recruitment and diversity skills. To assess the impact of this action plan, an examination of whether and to what degree acceptance of immigrants in the job market has developed in recent years is thus crucial. The results of this follow-up study can in a concrete way show the extent to which these plans have succeeded in their stated objectives.