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Internal Migration in Finland: Municipal Characteristics and Net Migration, 1995-2024

Torppa, Reetta Elina LU (2026) EKHS02 20261
Department of Economic History
Abstract
As rural-urban migration persists and population concentrates into urban areas, rural municipalities are increasingly struggling with population decline. Using longitudinal data from Statistics Finland, this thesis aims to investigate what municipal characteristics have contributed to net migration rates in 292 Finnish municipalities between 1995 and 2024 by conducting year fixed effects and two-way fixed effects regression. This thesis also analyses differences in net migration rates in eastern and western Finland between 1995 and 2024. The results suggest that unemployment is negatively associated with net migration outcomes in municipalities, and that it has also contributed somewhat to the East-West difference in net migration rates.... (More)
As rural-urban migration persists and population concentrates into urban areas, rural municipalities are increasingly struggling with population decline. Using longitudinal data from Statistics Finland, this thesis aims to investigate what municipal characteristics have contributed to net migration rates in 292 Finnish municipalities between 1995 and 2024 by conducting year fixed effects and two-way fixed effects regression. This thesis also analyses differences in net migration rates in eastern and western Finland between 1995 and 2024. The results suggest that unemployment is negatively associated with net migration outcomes in municipalities, and that it has also contributed somewhat to the East-West difference in net migration rates. The East-West difference in net migration rates was large in the late 1990s and early 2000s but has since then converged significantly. Inconclusive results are found as to whether average labour income differences between municipalities are associated with net migration outcomes. Population composition is strongly associated with net migration outcomes, contributing to differences in net migration between urban, semi-urban and rural municipalities. (Less)
Please use this url to cite or link to this publication:
author
Torppa, Reetta Elina LU
supervisor
organization
course
EKHS02 20261
year
type
H2 - Master's Degree (Two Years)
subject
language
English
id
9242470
date added to LUP
2026-09-07 12:29:19
date last changed
2026-09-07 12:29:19
@misc{9242470,
  abstract     = {{As rural-urban migration persists and population concentrates into urban areas, rural municipalities are increasingly struggling with population decline. Using longitudinal data from Statistics Finland, this thesis aims to investigate what municipal characteristics have contributed to net migration rates in 292 Finnish municipalities between 1995 and 2024 by conducting year fixed effects and two-way fixed effects regression. This thesis also analyses differences in net migration rates in eastern and western Finland between 1995 and 2024. The results suggest that unemployment is negatively associated with net migration outcomes in municipalities, and that it has also contributed somewhat to the East-West difference in net migration rates. The East-West difference in net migration rates was large in the late 1990s and early 2000s but has since then converged significantly. Inconclusive results are found as to whether average labour income differences between municipalities are associated with net migration outcomes. Population composition is strongly associated with net migration outcomes, contributing to differences in net migration between urban, semi-urban and rural municipalities.}},
  author       = {{Torppa, Reetta Elina}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Internal Migration in Finland: Municipal Characteristics and Net Migration, 1995-2024}},
  year         = {{2026}},
}