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Immigrant Participation in Social Assistance Programs: Evidence from German Guestworkers

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Author Info
Riphahn, Regina

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Abstract

The share of immigrants in the German social assistance program exceeds their population share and continues to grow. This study evaluates the causes of this phenomenon and tests for the effects of assimilation, cohort, age at migration, and country of origin on immigrant behaviour. It uses panel data and jointly models panel attrition, labour force status, and household social assistance dependence. Assimilation and age at migration increase the probability of social assistance dependence. In addition, the labour force status of the household head has different effects for native and immigrant welfare risks. The correction for unobserved heterogeneities in the estimation substantively affects the results.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2318.

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Date of creation: Dec 1999
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Handle: RePEc:cpr:ceprdp:2318

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Related research
Keywords: Assimilation; Panel Attrition; Social Assistance; Welfare;

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
  3. Anderson, Patricia M & Meyer, Bruce D, 1997. "Unemployment Insurance Takeup Rates and the After-Tax Value of Benefits," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 913-37, August.
  4. Bauer, Thomas & Zimmermann, Klaus F., 1997. "Unemployment and wages of ethnic Germans," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 361-377. [Downloadable!] (restricted)
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  5. Francine D. Blau, 1984. "The use of transfer payments by immigrants," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 37(2), pages 222-239, January.
  6. Borjas, George J. & Trejo, Stephen J., 1993. "National origin and immigrant welfare recipiency," Journal of Public Economics, Elsevier, vol. 50(3), pages 325-344, March. [Downloadable!] (restricted)
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  7. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June. [Downloadable!] (restricted)
  8. Lillard, Lee & Smith, James P & Welch, Finis, 1986. "What Do We Really Know about Wages? The Importance of Nonreporting and Census Imputation," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 489-506, June. [Downloadable!] (restricted)
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  9. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant Participation in the Welfare System," NBER Working Papers 3423, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November. [Downloadable!] (restricted)
  11. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of immigrant men in Canada: Job tenure, cohort, and macroeconomic conditions," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(3), pages 465-482, April.
  12. Bird, Edward J. & Kayser, Hilke & Frick, Joachim R. & Wagner, Gert G., 1999. "The Immigrant Welfare Effect: Take-Up or Eligibility?," IZA Discussion Papers 66, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Blundell, Richard & Fry, Vanessa & Walker, Ian, 1987. "Modelling the Take-up of Means-tested Benefits: the Case of Housing Benefits in the United Kingdom," Economic Journal, Royal Economic Society, vol. 98(390), pages 58-74, Supplemen. [Downloadable!] (restricted)
  14. Borjas, George J & Hilton, Lynette, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 575-604, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Guy Lacroix & Gino Santarossa & Pierre Gagné, 2003. "Une analyse de la dynamique de la dépendance à l'assistance-emploi des populations natives et immigrantes québécoises," Cahiers de recherche 0342, CIRPEE. [Downloadable!]
    Other versions:
  2. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Riphahn, Regina, 2001. "Dissimilation? The Educational Attainment of Second Generation Immigrants," CEPR Discussion Papers 2903, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2006. "Immigration, Integration and the Labour Market," CPB Discussion Papers 75, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  6. Aleksynska, Mariya, 2007. "Civic Participation of Immigrants: Culture Transmission and Assimilation," MPRA Paper 4594, University Library of Munich, Germany. [Downloadable!]
  7. Ekhaugen, Tyra, 2005. "Immigrants on Welfare: Assimilation and Benefit Substitution," Memorandum 18/2005, Oslo University, Department of Economics. [Downloadable!]
  8. David Wildasin, 2008. "Public Finance in an Era of Global Demographic Change: Fertility Busts, Migration Booms, and Public Policy," Working Papers 2008-02, University of Kentucky, Institute for Federalism and Intergovernmental Relations. [Downloadable!]
  9. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2007. "When Minority Labor Migrants Meet the Welfare State," IZA Discussion Papers 2872, Institute for the Study of Labor (IZA). [Downloadable!]
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