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Immigrant Responses to Social Insurance Generosity

Author

Listed:
  • 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

Immigrants from low‐income source countries tend to be underrepresented in employment and overrepresented in social insurance programs. Based on administrative data from Norway, we examine how these gaps reflect systematic differences in the impacts of social insurance benefits on work incentives. Drawing on a benefit formula reform of the temporary disability insurance program, we identify behavioral employment and earnings responses to changes in benefits, and find that responses are significantly larger for immigrants. Among female immigrant program participants, earnings of the male spouse also drop in response to more generous benefits. We uncover stronger behavioral responses among natives with characteristics similar to those of immigrants.

Suggested Citation

  • Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2018. "Immigrant Responses to Social Insurance Generosity," IZA Discussion Papers 11482, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11482
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    More about this item

    Keywords

    immigrants; labor supply; social insurance;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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