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Migrants, Ethnicity and the Welfare State

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  • Gil S. Epstein

    ()
    (Bar-Ilan University, IZA and CReAM)

Abstract

A model is set up where migrants must choose a level of social traits and consumption of ethnic goods. As the consumption level of ethnic goods increases, the migrants become ever more different to the local population and are less assimilated. Less assimilation affects the reaction of the local population to the migrants and their willingness to accept the newcomers. This social phenomenon and affects wages and unemployment. We show that the growth in the unemployment and social benefits of legal migrants increases the consumption of ethnic goods, thus creating a trap wherein the willingness of the local population to accept the migrants into the economy decreases. This process also increases the probability of the migrants' dependence on the welfare state. On the other hand, illegal migrants could play an important role in the assimilation of the legal migrants.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1225.

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Date of creation: Sep 2012
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Handle: RePEc:crm:wpaper:1225

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Keywords: Welfare state; Social benefits; Ethnic goods; Social trait; Assimilation; Unemployment.;

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  1. Gil S. Epstein, 2006. "Extremism within the family," CReAM Discussion Paper Series 0606, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Thomas Bauer & Gil S. Epstein & Ira N. Gang, 2006. "The Influence of Stocks and Flows on Migrants’ Location Choices," CEDI Discussion Paper Series 06-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
  3. Barry R. Chiswick, 1998. "Hebrew language usage: Determinants and effects on earnings among immigrants in Israel," Journal of Population Economics, Springer, vol. 11(2), pages 253-271.
  4. Chiswick, Carmel U., 2006. "The Economic Determinants of Ethnic Assimilation," IZA Discussion Papers 2212, Institute for the Study of Labor (IZA).
  5. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
  6. Epstein, Gil S. & Gang, Ira N., 2004. "Ethnic Networks and International Trade," IZA Discussion Papers 1232, Institute for the Study of Labor (IZA).
  7. Epstein, Gil S., 2000. "Labor Market Interactions Between Legal and Illegal Immigrants," IZA Discussion Papers 204, Institute for the Study of Labor (IZA).
  8. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
  9. Constant, Amelie F. & Zimmermann, Klaus F., 2005. "Immigrant Performance and Selective Immigration Policy: A European Perspective," IZA Discussion Papers 1715, Institute for the Study of Labor (IZA).
  10. Dustmann, Christian, 1997. "The effects of education, parental background and ethnic concentration on language," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 245-262.
  11. 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).
  12. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  13. Epstein, Gil S. & Hillman, Arye L., 2003. "Unemployed immigrants and voter sentiment in the welfare state," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1641-1655, August.
  14. Eli Berman, 1998. "Sect, Subsidy, and Sacrifice: An Economist's View of Ultra-Orthodox Jews," NBER Working Papers 6715, National Bureau of Economic Research, Inc.
  15. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  16. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-70, April.
  17. Kahanec, Martin, 2006. "Ethnic Specialization and Earnings Inequality: Why Being a Minority Hurts but Being a Big Minority Hurts More," IZA Discussion Papers 2050, Institute for the Study of Labor (IZA).
  18. Gil Epstein, 2009. "Willingness to Assimilate and Ethnicity," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 35, pages 1.
  19. Gil S. Epstein & Ira N. Gang, 2010. "Migration and Culture," Working Papers 2010-17, Department of Economics, Bar-Ilan University.
  20. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 101-30, April.
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