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Labour migrant adjustments in the aftermath of the financial crisis

Author

Listed:
  • Bernt Bratsberg

    (The Ragnar Frisch Centre for Economic Research, Oslo, Norway)

  • Oddbjørn Raaum

    (The Ragnar Frisch Centre for Economic Research, Oslo, Norway)

  • Knut Røed

    (The Ragnar Frisch Centre for Economic Research, Oslo, Norway)

Abstract

Based on individual longitudinal data, we examine the evolution of employment and earnings of post- EU accession Eastern European labour immigrants to Norway for a period of up to eight years after entry. We find that the migrants were particularly vulnerable to the negative labour demand shock generated by the financial crisis. During the winter months of 2008/09, the fraction of immigrant men claiming unemployment insurance benefits rose from below 2 to 14 per cent. Some of this increase turned out to be persistent, and unemployment remained considerably higher among immigrants than natives even three years after the crisis. Although we find that negative labour demand shocks raise the probability of return migration, the majority of the labour migrants directly affected by the downturn stayed in Norway and claimed unemployment insurance benefits.

Suggested Citation

  • Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2014. "Labour migrant adjustments in the aftermath of the financial crisis," RF Berlin - CReAM Discussion Paper Series 1419, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:1419
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    References listed on IDEAS

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    1. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    2. Olof Åslund & Lena Hensvik & Oskar Nordström Skans, 2014. "Seeking Similarity: How Immigrants and Natives Manage in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 405-441.
    3. Lena Nekby, 2006. "The emigration of immigrants, return vs onward migration: evidence from Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 197-226, June.
    4. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.
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    Cited by:

    1. Giang Ho & Ms. Kazuko Shirono, 2015. "The Nordic Labor Market and Migration," IMF Working Papers 2015/254, International Monetary Fund.
    2. Andersen, Torben M. & Migali, Silvia, 2016. "Migrant Workers and the Welfare State," IZA Discussion Papers 9940, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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