Immigration and social insurance design

We point out two reasons why policy-makers may consider redesigning social insurance systems in the light of increasing migration flows. First, immigrant labour supply is particularly sensitive to social insurance parameters. Second, employers and migrants may benefit from the creation of low-paying jobs, which means that generous benefits may affect both the level of immigration and its composition. Still, we do not recommend a reduction in the level of benefits or the imposition of tighter regulations on migration. Instead, we call for a more activity-oriented social insurance policy. The policy brief is produced by Nordregio on behalf of the Nordic Welfare Centre and the project Nordic collaboration for integration. More information at www.integrationnorden.org