Immigrant Responses to Social Insurance Generosity
Link to article:
Authors:
Bratsberg, Bernt, Oddbjørn Raaum, Knut Røed
Year:
2020
Reference:
Vol 65Summary
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 whether such gaps reflect systematic differences in impacts of social insurance benefits on work incentives. Drawing on a reform of the temporary disability insurance program, we identify negative employment and earnings effects of higher benefits. While behavioral responses are significantly larger for immigrants, these immigrant-native differentials are largely explained by differences in earnings prospects, family structure, and job opportunities. We also uncover cross effects of benefits on the labor supply of spouses, amplifying the adverse effects on family earnings.
JEL:
H53; J15; J22
Keywords:
Immigrants; Labor supply; Social insurance
Project:
Oppdragsgiver: Norges ForskninsgrådOppdragsgivers prosjektnr.: 280350/GE
Frisch prosjekt: 1191 - The decline in employment and the rise of its social gradient
