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Why Immigrants Manage to Grab More SocialBenefits? Empirical Cross - Country Analysis

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  • Lubomira Anastassova
  • Teodora Paligorova

Abstract

Using data from the Luxembourg Income Study we analyze state welfare generosity to immigrants and natives in Sweden, Norway, Belgium, Germany and the USA. The distinction between EU and non-EU immigrants proves to be an interesting one. We find a substantial social income gap between non-EU immigrants and natives, while EU immigrants are quite similar to natives. The main reasons for the existence of this social income gap are family wage income, number of children and income earners in the family. While these characteristics explain almost fully the gap in the EU countries, they are of little help in others.

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Bibliographic Info

Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp263.

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Date of creation: Jun 2005
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Handle: RePEc:cer:papers:wp263

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Keywords: Immigration; European Union; social income.;

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  1. Michael Shields & Stephen Wheatley Price, 1998. "The earnings of male immigrants in England: evidence from the quarterly LFS," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 30(9), pages 1157-1168.
  2. George J. Borjas & Stephen J. Trejo, 1990. "Immigrant Participation in the Welfare System," NBER Working Papers 3423, National Bureau of Economic Research, Inc.
  3. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute for the Study of Labor (IZA).
  4. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, Elsevier, vol. 61(1), pages 5-21, March.
  5. Roger Axelsson & Olle Westerlund, 1998. "A panel study of migration, self-selection and household real income," Journal of Population Economics, Springer, Springer, vol. 11(1), pages 113-126.
  6. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  7. Bruce Headey & Robert Goodin & Ruud Muffels & Henk-Jan Dirven, 2000. "Is There a Trade-Off Between Economic Efficiency and a Generous Welfare State? A Comparison of Best Cases of `The Three Worlds of Welfare Capitalism’," Social Indicators Research, Springer, Springer, vol. 50(2), pages 115-157, May.
  8. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA).
  9. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, Springer, vol. 7(2), pages 157-75.
  10. Guenter Lang, 2000. "Native-Immigrant Wage Differentials in Germany - Assimilation, Discrimination, or Human Capital?," Discussion Paper Series, Universitaet Augsburg, Institute for Economics 197, Universitaet Augsburg, Institute for Economics.
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Cited by:
  1. Giulietti, Corrado & Guzi, Martin & Kahanec, Martin & Zimmermann, Klaus F., 2011. "Unemployment Benefits and Immigration: Evidence from the EU," IZA Discussion Papers 6075, Institute for the Study of Labor (IZA).
  2. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports, Institute for the Study of Labor (IZA) 43, Institute for the Study of Labor (IZA).

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