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Welfare Reform and Migrant’s Long-term Labor Market Integration

Author

Listed:
  • Johannes Kunz

    (Monash University)

  • Anna Zhu

    (RMIT)

Abstract

We study the effect of reducing welfare assistance on migrants’ long-term integration in Australia. The policy postponed a migrant’s eligibility for benefits during their first two years in the country. It mainly affected mothers and was announced after their arrival. Using a regression discontinuity design and 21 years of administrative welfare data, we find significant reductions in welfare receipt, where the gap widened over time, and stabilized in the long run. Benefit receipt amounts reduced by 28%, and time-on-benefits by 19%, particularly in the unemployment and disability categories. We observe larger treatment effects for mothers from disadvantaged backgrounds.

Suggested Citation

  • Johannes Kunz & Anna Zhu, 2023. "Welfare Reform and Migrant’s Long-term Labor Market Integration," Papers 2023-05, Centre for Health Economics, Monash University.
    • Handle: RePEc:mhe:chemon:2023-05
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    More about this item

    Keywords

    Welfare reform; labor market outcomes; migration; job quality;
    All these keywords.

    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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