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Welfare and the locational choices of new immigrants

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  • Madeline Zavodny

Abstract

The 1996 welfare law ends most noncitizens' eligibility for federally funded public assistance programs and allows states to cut off payments under other welfare programs to noncitizens. If some states choose to continue extending benefits while others terminate payments to immigrants, interstate differentials in welfare generosity will widen. Potential policy differences create concern that states that continue to offer benefits to immigrants will become welfare magnets. ; In this article, Madeline Zavodny examines whether welfare generosity is correlated with the number of new immigrants arriving in a state in 1982 and 1992. The data indicate that welfare payments are not correlated with immigration levels; rather, the presence of earlier immigrants is the primary determinant of the locational choices of new immigrants.

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File URL: http://www.dallasfed.org/assets/documents/research/er/1997/er9702a.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of Dallas in its journal Economic and Financial Policy Review.

Volume (Year): (1997)
Issue (Month): Q II ()
Pages: 2-10

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Handle: RePEc:fip:fedder:y:1997:i:qii:p:2-10

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Keywords: Emigration and immigration ; Welfare;

References

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  1. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
  2. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-95, November.
  3. Buckley, F. H., 1996. "The political economy of immigration policies," International Review of Law and Economics, Elsevier, vol. 16(1), pages 81-99, March.
  4. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October.
  5. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
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Cited by:
  1. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. Aslund, O., 2000. "Immigrant Settlement Policies and Subsequent Migration," Papers 2000:23, Uppsala - Working Paper Series.
  3. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign students and migration to the United States," Munich Reprints in Economics 20044, University of Munich, Department of Economics.
  4. René Böheim & Karin Mayr, 2005. "Immigration and public spending," Economics working papers 2005-12, Department of Economics, Johannes Kepler University Linz, Austria.
  5. Libman, Alexander & Herrmann-Pillath, Carsten & Yadav, Gaurav, 2013. "Are human rights and economic well-being substitutes? The evidence from migration patterns across the Indian states," European Journal of Political Economy, Elsevier, vol. 31(C), pages 139-164.
  6. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA).
  7. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer, vol. 22(1), pages 145-174, January.
  8. Piil Damm, Anna, 2005. "Immigrants’ Location Preferences: Exploiting a Natural Experiment," Working Papers 05-2, University of Aarhus, Aarhus School of Business, Department of Economics.
  9. Roberto Pedace & Stephanie Rohn, 2008. "A Warm Embrace or the Cold Shoulder: Wage and Employment Outcomes in Ethnic Enclaves," Working Papers 08-09, Center for Economic Studies, U.S. Census Bureau.
  10. Bosch, Mariano & Carnero, M. Angeles & Farré, Lídia, 2011. "Rental Housing Discrimination and the Persistence of Ethnic Enclaves," IZA Discussion Papers 5583, Institute for the Study of Labor (IZA).
  11. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(3), pages 231-247, September.
  12. Piil Damm, Anna, 2005. "The Danish Dispersal Policy on Refugee Immigrants 1986-1998: A Natural Experiment?," Working Papers 05-3, University of Aarhus, Aarhus School of Business, Department of Economics.
  13. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
  14. Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publication 60, CPB Netherlands Bureau for Economic Policy Analysis.
  15. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute for the Study of Labor (IZA).
  16. Tu, Jiong, 2010. "The Effect of Enclave Residence on the Labour Force Activities of Immigrants in Canada," IZA Discussion Papers 4744, Institute for the Study of Labor (IZA).
  17. Dodson, Marvin E., 2001. "Welfare generosity and location choices among new United States immigrants," International Review of Law and Economics, Elsevier, vol. 21(1), pages 47-67, March.

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