June 2014

IZA DP No. 8292: Immigrants, Labor Market Performance, and Social Insurance

published in: Economic Journal, 2014, 124 (580), F644-F683

Using longitudinal data from the date of arrival, we study long-term labor market and social insurance outcomes for all major immigrant cohorts to Norway since 1970. Immigrants from high-income countries performed as natives, while labor migrants from low-income source countries had declining employment rates and increasing disability program participation over the lifecycle. Refugees and family migrants assimilated during the initial period upon arrival, but labor market convergence halted after a decade and was accompanied by rising social insurance rates. For the children of labor migrants of the 1970s, we uncover evidence of intergenerational assimilation in education, earnings and fertility.