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When Minority Labor Migrants Meet the Welfare State

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Author Info

  • Bratsberg, Bernt

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Raaum, Oddbjørn

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    ()
    (Ragnar Frisch Centre for Economic Research)

Abstract

We find that the lifecycle employment profiles of nonwestern male labor migrants who came to Norway in the early 1970s diverge significantly from those of native comparison persons. During the first years after arrival almost all of the immigrants worked and their employment rate exceeded that of natives. But, about ten years upon arrival, immigrant employment started a sharp and steady decline. By 2000, the immigrant employment rate was 50 percent, compared to 87 percent for the native comparison group. To some extent, the decline in immigrant employment can be explained by immigrants being overrepresented in jobs associated with short employment careers. But we also identify considerable disincentives embedded in the social security system that contribute to poor lifecycle employment performance of immigrants with many dependent family members. Finally, we uncover evidence that labor immigrants are particularly vulnerable to the state of the economy and face a high probability of permanent exit from employment during economic downturns.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2872.

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Length: 52 pages
Date of creation: Jun 2007
Date of revision:
Publication status: published in: Journal of Labor Economics, 2010, 28 (3), 633-676
Handle: RePEc:iza:izadps:dp2872

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Keywords: labor market outcomes; labor migration;

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References

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Citations

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Cited by:
  1. 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.
  2. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
  3. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2014. "Time aggregation and state dependence in welfare receipt," Discussion Papers 771, Research Department of Statistics Norway.
  4. Markussen, Simen & Røed, Knut, 2012. "Social Insurance Networks," IZA Discussion Papers 6446, Institute for the Study of Labor (IZA).
  5. Erling Barth & Bernt Bratsberg & Oddbjørn Raaum, 2011. "Immigrant Wage Profiles Within and Between Establishments," Norface Discussion Paper Series 2011019, Norface Research Programme on Migration, Department of Economics, University College London.
  6. 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).
  7. 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.
  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. Alessandra Venturini, 2012. "Methodological Aspects of Research on Flows Human Capital Flows: A survey," RSCAS Working Papers carim2012/01, European University Institute.
  10. 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.
  11. Michele Pellizzari, 2013. "The use of welfare by migrants in Italy," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 155-166, February.
  12. 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).
  13. 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).

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