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Immigrant Labor Market Integration across Admission Classes

Listed author(s):
  • Bratsberg, Bernt

    ()

    (Ragnar Frisch Centre for Economic Research)

  • Raaum, Oddbjørn

    ()

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    ()

    (Ragnar Frisch Centre for Economic Research)

We examine patterns of labor market integration across immigrant groups. The study draws on Norwegian longitudinal administrative data covering labor earnings and social insurance claims over a 25‐year period and presents a comprehensive picture of immigrant‐native employment and social insurance differentials by admission class and by years since entry. For refugees and family immigrants from low‐income source countries, we uncover encouraging signs of labor market integration during an initial period upon admission, but after just 5‐10 years, the integration process goes into reverse with widening immigrant-native employment differentials and rising rates of immigrant social insurance dependency. Yet, the analysis reveals substantial heterogeneity within admission class and points to an important role of host‐country schooling for successful immigrant labor market integration.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10513.

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Length: 37 pages
Date of creation: Jan 2017
Publication status: published in: Nordic Economic Policy Review, 2017, 7 , 17-54.
Handle: RePEc:iza:izadps:dp10513
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  1. Kjetil Storesletten, 2000. "Sustaining Fiscal Policy through Immigration," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 300-323, April.
  2. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
  3. Max Nielsen & Jos Smit & Jordi Guillen, 2009. "Market Integration of Fish in Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 367-385.
  4. John Kennan, 2013. "Open Borders," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 1-13, April.
  5. Luik, Marc-André & Emilsson, Henrik & Bevelander, Pieter, 2016. "Explaining the Male Native-Immigrant Employment Gap in Sweden: The Role of Human Capital and Migrant Categories," IZA Discussion Papers 9943, Institute for the Study of Labor (IZA).
  6. Bernt Bratsberg & Erling Barth & Oddbjørn Raaum, 2006. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 243-263, May.
  7. Husted, Leif & Skyt Nielsen, Helena & Rosholm, Michael & Smith, Nina, 2000. "Employment and Wage Assimilation of Male First Generation Immigrants in Denmark," CLS Working Papers 00-1, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  8. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 497-550.
  9. Mari Rege & Kjetil Telle & Mark Votruba, 2009. "The Effect of Plant Downsizing on Disability Pension Utilization," Journal of the European Economic Association, MIT Press, vol. 7(4), pages 754-785, 06.
  10. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
  11. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.
  12. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 201-245, April.
  13. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
  14. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, March.
  15. Per Lundborg, 2013. "Refugees' Employment Integration in Sweden: Cultural Distance and Labor Market Performance," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 219-232, May.
  16. Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
  17. George J. Borjas, 1982. "The Earnings of Male Hispanic Immigrants in the United States," ILR Review, Cornell University, ILR School, vol. 35(3), pages 343-353, April.
  18. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, Institute for the Study of Labor (IZA).
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