Health shocks and earnings trajectories
A comparative study of migrants and natives in Finland
Bibliographic Data
| ID | 13136103 |
|---|---|
| Authors | Waseem Haider (0000-0002-5265-0780, University of Turku, corresponding author), Laura Salonen (0000-0001-8295-7073, Finnish Institute of Occupational Health), Elina Kilpi-Jakonen (0000-0003-0526-0170, University of Turku) |
| Year | 2025 |
| Volume | 13 |
| Pages | 100387-100387 |
| Publication date | 2025-12-16 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Migration and Health (JOURNAL) |
| Journal identifiers | ISSN: 2666-6235 • E-ISSN: 2666-6235 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.jmh.2025.100387 |
| PMID | 42516313 |
| OpenAlex | W4417400467 |
| Language | EN |
| References cited | 36 |
Analysis of the effect of health shock on earnings among natives and migrants. • Use of rich register data, event study design and Difference-in-Differences models. • Experience of a health shock negatively affects earnings of natives and migrants. • The adverse effect was higher among migrants than among natives. • Employment conditions explain the differences more than the migrant status. The earnings gap between migrants and natives is well-documented, but the extent to which health shocks contribute to this gap remains unclear. We estimated the impact of a health shock on long-term earnings for both natives and migrants from different regions of origin. Using high-quality full-population register data, we followed all residents aged 25 to 58 years in 2011, who were employed and did not experience a health shock between 2011 and 2012. A health shock was defined as the unanticipated hospitalization in 2013–14. Annual earnings were followed from 2011 to 2018. Using an event-study approach, we estimated the average treatment effects on the treated using dynamic difference-in-differences models stratified by gender and region of origin. Health shocks led to substantial and persistent earnings losses. On average, the health shock reduced earnings levels by 7.4 % for natives and 13.5 % for migrants compared to their pre-shock earnings levels. Among migrants, significant declines were observed in earnings among those from European & Western, Russia and the former Soviet Union, as well as from ‘other’ region of origin. By gender, the earnings penalty due to health shocks was greater for migrant men (17.7 %), 1.5 times that of their female counterparts (8.6 %). The overall migrant–native difference of about six percentage points was small. Even if the average earnings penalty of a health shock is similar across groups, health shocks could still contribute to migrant–native disparities if migrants are more likely to experience such shocks initially
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| Citation velocity | historical |
|---|---|
| Highly cited | No |