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Does Immigration Weaken Natives' Support for the Welfare State?: Evidence from Germany

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  • Holger Stichnoth

Abstract

Using data from the 1997 and 2002 waves of the German Socio-Economic Panel and from official statistics, I study whether natives are less supportive of state help for the unemployed in regions where the share of foreigners among the unemployed is high. Unlike previous studies, I use individual-level panel data, which allows a more convincing identification of a causal effect. I find that the negative bivariate association is mainly driven by observed individual differences such as East German origin or income. While there remains some evidence of a negative association even after adjusting for individual differences (including time-invariant unobserved differences), the association is weak compared to the association with other variables such as income, self-employment, or East German origin.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 272.

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Length: 58 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp272

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Keywords: redistribution; social security; welfare state; immigration; ethnic diversity; Germany; cluster-robust standard errors; two-way clustering;

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References

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Cited by:
  1. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
  2. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Thomas Siedler & Bettina Sonnenberg, 2012. "Intergenerational Earnings Mobility and Preferences for Redistribution," SOEPpapers on Multidisciplinary Panel Data Research 510, DIW Berlin, The German Socio-Economic Panel (SOEP).

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