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When Minority Labor Migrants Meet the Welfare State

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  • Bernt Bratsberg
  • Oddbjørn Raaum
  • Knut Røed

Abstract

Life cycle employment of minority labor migrants who entered Norway in the early 1970s diverges from that of natives. Immigrant employment was nearly complete during early years but declined to 50% by the year 2000 (compared to 87% for a native comparison group). We find that immigrant employment is particularly sensitive to the business cycle and that economic downturns of the 1980s and 1990s accelerated their labor market exit. We trace part of the decline to migrants being overrepresented in shrinking industries. But we also identify welfare disincentives that contribute to poor life cycle employment performance of immigrants with many dependent family members. (c) 2010 by The University of Chicago.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 28 (2010)
Issue (Month): 3 (07)
Pages: 633-676

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Handle: RePEc:ucp:jlabec:v:28:y:2010:i:3:p:633-676

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References

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Citations

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Cited by:
  1. Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2011. "Entrepreneurship: Origins and returns," Labour Economics, Elsevier, vol. 18(2), pages 180-193, April.
  2. Pellizzari, Michele, 2011. "The Use of Welfare by Migrants in Italy," IZA Discussion Papers 5613, Institute for the Study of Labor (IZA).
  3. Andrew Ellul & Chotibhak Jotikasthira & Christian T. Lundblad & Yihui Wang, 2012. "Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading," FMG Discussion Papers dp701, Financial Markets Group.
  4. Markussen, Simen & Røed, Knut, 2012. "Social Insurance Networks," IZA Discussion Papers 6446, Institute for the Study of Labor (IZA).
  5. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute for the Study of Labor (IZA).
  6. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2011. "Educating Children of Immigrants: Closing the Gap in Norwegian Schools," IZA Discussion Papers 6138, Institute for the Study of Labor (IZA).
  7. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2012. "Immigrant wage profiles within and between establishments," Labour Economics, Elsevier, vol. 19(4), pages 541-556.
  8. Wunder, Christoph & Riphahn, Regina T., 2011. "The dynamics of welfare entry and exit among natives and immigrants," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 49162, Verein für Socialpolitik / German Economic Association.
  9. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
  10. Augustin de Coulon & Dragos Radu, 2012. "Migrant Networks and Migration Policy: A “Grease or Sand the Wheel” Relationship?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(4), pages 32-36, 02.
  11. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute for the Study of Labor (IZA).
  12. Alessandra Venturini, 2012. "Methodological Aspects of Research on Flows Human Capital Flows: A survey," RSCAS Working Papers carim2012/01, European University Institute.

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