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Job Loss and Immigrant Labor Market Performance

Author

Listed:
  • Bernt Bratsberg

    (Frisch Centre for Economic Research)

  • Oddbjørn Raaum

    (Frisch Centre for Economic Research)

  • Knut Røed

    (Frisch Centre for Economic Research)

Abstract

While integration policies typically focus on labor market entry, we present evidence showing that immigrants from low†income countries tend to have more precarious jobs, and face more severe consequences of job loss, than natives. For immigrant workers in the Norwegian private sector, the probability of job loss in the near future is twice that of native workers. Using corporate bankruptcy for identification, we find that the adverse effects of job loss on future employment and earnings are more than twice as large for immigrant employees.

Suggested Citation

  • Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2016. "Job Loss and Immigrant Labor Market Performance," RFBerlin Discussion Paper Series 1602, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:1602
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    Citations

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    Cited by:

    1. Graziella Bertocchi & Marianna Brunetti & Anzelika Zaiceva, 2023. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 117-174, March.
    2. Maczulskij, Terhi & Böckerman, Petri & Kosonen, Tuomas, 2018. "Job Displacement, Inter-Regional Mobility and Long-Term Earnings," IZA Discussion Papers 11635, Institute of Labor Economics (IZA).
    3. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2020. "Immigrant Responses to Social Insurance Generosity," Labour Economics, Elsevier, vol. 65(C).
    4. Annette Alstadsæter & Bernt Bratsberg & Simen Markussen & Oddbjørn Raaum & Knut Røed, 2025. "Social gradients in employment during and after the COVID-19 pandemic," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(2), pages 349-370, June.
    5. Huanan Xu, 2018. "First fired, first hired? Business cycles and immigrant labor market transitions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-36, December.
    6. Lange, Martin & McNamara, Sarah & Schmidt, Philipp, 2024. "Labor market integration of asylum seekers in Europe: Recent trends and barriers," ZEW Discussion Papers 24-073, ZEW - Leibniz Centre for European Economic Research.
    7. Edvard N. Larsen & Adrian F. Rogne & Gunn E. Birkelund, 2018. "Perfect for the Job? Overqualification of Immigrants and their Descendants in the Norwegian Labor Market," Social Inclusion, Cogitatio Press, vol. 6(3), pages 78-103.
    8. Aldén, Lina & Hammarstedt, Mats & Miao, Chizheng, 2020. "Financial Capital and Immigrant Self-Employment: Evidence from a Swedish Reform," Working Paper Series 1359, Research Institute of Industrial Economics.
    9. Susan Athey & Lisa K. Simon & Oskar N. Skans & Johan Vikstrom & Yaroslav Yakymovych, 2023. "The Heterogeneous Earnings Impact of Job Loss Across Workers, Establishments, and Markets," Papers 2307.06684, arXiv.org, revised Feb 2024.
    10. Chassamboulli, Andri & Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro, 2024. "Immigration and labour market flows," Labour Economics, Elsevier, vol. 86(C).
    11. Erika Gubrium & Mariann Stærkebye Leirvik, 2022. "Taking Time Seriously: Biographical Circumstance and Immigrant Labor Integration Experience," Journal of International Migration and Integration, Springer, vol. 23(1), pages 303-320, March.
    12. Katrin Rickmeier, 2025. "Mobility after job loss in Germany: the effects of regional economic opportunities and economic worries on mobility intentions and behaviour," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 45(2), pages 271-297, June.
    13. Åslund, Olof & Larsson, Fredrik & Laun, Lisa, 2024. "Joining late, leaving early? Immigrant-native disparities in labor market exit," Labour Economics, Elsevier, vol. 89(C).
    14. Stefan Jestl & Marina Tverdostup, 2023. "The Labour Market Entry and Integration of Refugees and Other Migrants in Austria," wiiw Working Papers 231, The Vienna Institute for International Economic Studies, wiiw.
    15. Edvard N. Larsen & Adrian F. Rogne & Gunn E. Birkelund, 2018. "Perfect for the Job? Overqualification of Immigrants and their Descendants in the Norwegian Labor Market," Social Inclusion, Cogitatio Press, vol. 6(3), pages 78-103.
    16. Bratsberg, Bernt & Kotsadam, Andreas & Walther, Selma, 2021. "Male Fertility: Facts, Distribution and Drivers of Inequality," IZA Discussion Papers 14506, Institute of Labor Economics (IZA).
    17. Maria Balgova & Hannah Illing, 2024. "The labour market costs of job displacement by migrant status," Bank of England working papers 1099, Bank of England.
    18. Hoseini,Mohammad & Dideh,Mahsa Jahan, 2022. "How Do Shared Experiences of Economic Shocks Impact Refugees and Host Communities ? Evidence fromAfghan Refugees in Iran," Policy Research Working Paper Series 9915, The World Bank.
    19. Terhi Maczulskij, 2024. "Occupational Mobility of Routine Workers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(5), pages 1198-1229, October.
    20. Balgova, Maria & Illing, Hannah, 2024. "The Labor Market Costs of Job Displacement by Migrant Status," IZA Discussion Papers 17496, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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