New research: Immigrant Responses to Social Insurance Generosity
The paper "Immigrant Responses to Social Insurance Generosity" was published as IZA Discussion Paper no. 11482. The paper is written by OFS affiliates Bernt Bratsberg, Oddbjørn Raaum and Knut Røed, all at the Ragnar Frisch Centre for Economic Research.
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.
The full article can be accessed here.