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Immigrant Participation in Social Assistance Programs: Evidence from German Guestworkers

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  • Riphahn, Regina

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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Bibliographic Info

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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References

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  1. George J. Borjas & Lynette Hilton, 1995. "Immigration and the Welfare State: Immigrant Participation in Means- Tested Entitlement Programs," NBER Working Papers 5372, National Bureau of Economic Research, Inc.
  2. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant participation in the welfare system," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
  3. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
  4. 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.
  5. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  6. Wei-Yin Hu, 1998. "Elderly Immigrants on Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 711-741.
  7. Bauer, Thomas & Zimmermann, Klaus F, 1996. "Unemployment and Wages of Ethnic Germans," CEPR Discussion Papers 1512, C.E.P.R. Discussion Papers.
  8. 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.
  9. 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.
  10. Michael Baker & Dwayne Benjamin, 1995. "The Receipt of Transfer Payments by Immigrants to Canada," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 650-676.
  11. Francine D. Blau, 1984. "The use of transfer payments by immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(2), pages 222-239, January.
  12. Bird, Edward J. & Kayser, Hilke & Wagner, Gert G. & Frick, Joachim R., 1999. "The Immigrant Welfare Effect: Take-Up or Eligibility?," IZA Discussion Papers 66, Institute for the Study of Labor (IZA).
  13. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
  14. 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.
  15. 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.
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Citations

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Cited by:
  1. Leonid V. Azarnert, 2010. "Immigration, fertility and human capital: A model of economic decline of the West," Working Papers 2010-04, Department of Economics, Bar-Ilan University.
  2. Martin Kahanec & Klaus F. Zimmermann, 2009. "Migration in an enlarged EU: A challenging solution?," European Economy - Economic Papers 363, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  3. Rob Euwals & Hans Roodenburg & J. Dagevos & M. Gijsberts, 2006. "Immigration, integration and the labour market; Turkish immigrants in Germany and the Netherlands," CPB Discussion Paper 75, CPB Netherlands Bureau for Economic Policy Analysis.
  4. 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," CIRANO Project Reports 2003rp-14, CIRANO.
  5. 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).
  6. Hinte, Holger & Rinne, Ulf & Zimmermann, Klaus F., 2011. "Zuwanderung, Demografie und Arbeitsmarkt: Fakten statt Vorbehalte," IZA Standpunkte 37, Institute for the Study of Labor (IZA).
  7. Riphahn, Regina, 2001. "Dissimilation? The Educational Attainment of Second Generation Immigrants," CEPR Discussion Papers 2903, C.E.P.R. Discussion Papers.
  8. Kirdar, Murat, 2007. "Labor market outcomes, capital accumulation, and return migration: Evidence from immigrants in Germany," MPRA Paper 2028, University Library of Munich, Germany.
  9. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2007. "When Minority Labor Migrants Meet the Welfare State," IZA Discussion Papers 2872, Institute for the Study of Labor (IZA).
  10. Ekhaugen, Tyra, 2005. "Immigrants on Welfare: Assimilation and Benefit Substitution," Memorandum 18/2005, Oslo University, Department of Economics.
  11. Aleksynska, Mariya, 2007. "Civic Participation of Immigrants: Culture Transmission and Assimilation," MPRA Paper 4594, University Library of Munich, Germany.
  12. 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.
  13. Euwals, Rob & Dagevos, Jaco & Gijsberts, Mérove & Roodenburg, Hans, 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).

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