Serious illness leads to long-term earnings losses as migrants are hit harder in Finland

Using Finnish, nationwide register data that cover the entire working-age population, the study followed workers before and after major health shocks, such as heart attacks, cancers, severe injuries, and acute mental health crises. Unlike many previous studies, the research relies on hospital records and verified medical diagnoses rather than self-reported health, allowing for a precise picture of how earnings change over time.

“The findings show that a serious health event leads to a clear and persistent drop in earnings for both migrants and natives. On average, migrants lose close to €4,000 per year following a health shock, compared to about €2,600 among natives. Although Finland’s universal healthcare and welfare systems reduce the financial impact, they do not fully protect workers from earning loss,” says Doctoral Researcher Waseem Haider from the University of Turku.

Crucially, the study finds that these differences are explained less by migrant background itself and more by employment conditions. Migrants are more likely to work in physically demanding, lower-paid, or insecure jobs, where health problems are more likely to disrupt employment and slow recovery. Workers in manual and low-skilled occupations faced the largest earnings declines, regardless of origin.

The study showed that there are also differences between genders.

“Among native Finns, men and women were affected similarly. However, among migrants, men faced significantly larger earning losses than women. This seems to reflect that migrant men are concentrated in physically demanding and unstable jobs, where illness more easily leads to reduced earnings,” says Haider.

The results challenge the idea that migrants’ often better initial health protects them from long-term economic disadvantage. Even when migrants start out healthier, a serious illness later in life can trigger long-term earning penalties when combined with insecure employment and limited access to workplace adjustments or rehabilitation.

The study highlights the need for policies that go beyond healthcare alone. Improving job quality, strengthening occupational health services, and ensuring equal access to income protection and rehabilitation are essential in reducing the long-term economic consequences of an illness. Supporting workers’ recovery is not only a health issue, but a key part of building a fair and resilient labour market.

The study was conducted by Doctoral Researcher Waseem Heider and Professor Elina Kilpi-Jakonen at the INVEST Research Flagship Centre, University of Turku, in collaboration with Senior Researcher Laura Salonen from the Finnish Institute of Occupational Health.