Determinants of Migration in the Nordic Labor Market

Migration flows in the integrated Nordic labor market are heavily dominated by Finnish migrationto Sweden.Differencesin migrationbehavioracrossthe Nordicpopulationsare identified. Elasticities of migrationare obtained from a logistic human capital model estimated as seemingly unrelated regressions. Differences in migration behavior are shown to exist, but the elasticities are not systematically higher for the Finns as could be expected. The domination of Finnish migration to Sweden is instead explained by real wage differences and since these have narrowed, major migration flows should not be expected in thefuture,unlesslargedifferencesin labormarketperformancearise.