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The Rise and Fall of Immigrant Employment:
A Lifecycle Study of Labor Migrants to Norway
By Bratsberg, Bernt, Oddbjørn Raaum, and Knut Røed
2006
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Abstract |
We find that the lifecycle employment profiles of nonwestern male labor migrants that 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. That year, as many as 74 percent of
the non-employed immigrants received a permanent disability pension and an additional 16
percent received another form of social security transfer. We identify considerable
disincentives embedded in the social security system that may be responsible for the poor
lifecycle employment performance of the immigrant cohort. But we also uncover evidence
that labor immigrants are particularly vulnerable to the state of the economy and face a high
probability of permanent exit from the labor market during economic downturns. |
| Project:
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1391 Strategic Institute Program on Labor Market and Pension Research
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| Financing:
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The Ministry of Labour and Social Inclusion
and the Ministry of Finance and the World Bank Research Program on
International Migration and Development. |
| Contact:
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bernt.bratsberg@frisch.uio.no |
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