Foreign Citizens in Finland as Recipients of Social Security Benefits

Authors

• Helka Hytti
• Seppo Paananen

DOI: https://doi.org/10.23979/fypr.44985

Keywords:

immigrants, integration, foreign citizen, social security, labor market

Abstract

This article looks at recipiency rates for social security benefits and active labor
market measuresamong working-ageforeign residentsof Finland, and compares them
to the corresponding rates among Finnish citizens. Data for the study was obtained
by collating individual-level datafrom the Finnishpopulation register,various social
security registers, the studentfinancial aid register and thejobseeker register maintained
by the employment authorities. The analysis focuses on unemployment benefits,
maternity and parental allowances, child home-care allowances, income support
andfinancial aid benefitsfor students. The study rejlects the situation as of November
2000.
The results show substantial variation among the ethnic groups in terms of social
security recipiency. The highest recipiency rates were seen among refugees,followed
by persons having entered Finland on a passport issued in Russia or theformer Soviet
Union.As for participation in active labor market measures, Russians and citizens
of the former Soviet Union, refugees and Estonians had signifzcantly higher
recipiency rates than the general Finnish population. Another finding suggesting a
high level of motivation towards labor market participation in the abovementioned
groups is that young persons in these groups were nearly as likely as young Finnish
citizens to receivefinancial assistancefor studies, either in theform offinancial aid
benefits or labor market training.