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Welfare Dependency among Danish Immigrants

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Author Info

  • Blume, Kræn

    ()
    (AKF)

  • Verner, Mette

    ()
    (Department of Economics, Aarhus School of Business)

Abstract

In this paper, we investigate determinants of the welfare dependency among immigrants in an assimilation framework. The duration of stay is a major determinant of welfare dependency. Also, assimilation patterns vary substantially across immigrants from developed and less devel-oped countries, respectively. The late arriving immigrants are relatively more dependent on transfers, explaining part of the general increase in welfare dependency during the latest years. This is partly attributed to the large variation in qualifications across cohorts of immigrants. Fur-thermore, the business cycle effects of immigrants appear to be considerably larger than for na-tives.

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File URL: http://www.hha.dk/nat/wper/06-6_kbjmv.pdf
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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 06-6.

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Length: 50 pages
Date of creation: 27 Sep 2006
Date of revision:
Handle: RePEc:hhs:aareco:2006_006

Note: Forthcoming in European Journal of Political Economy
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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Related research

Keywords: Welfare dependency; transfers; immigrants; assimilation; two-limit tobit;

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References

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  1. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  2. Kræn Blume Jensen & Mette Ejrnæs & Helena Skyt Nielsen & Allan Würtz, 2003. "Self-Employment among Immigrants: A Last Resort?," CAM Working Papers 2003-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  3. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, 03.
  4. Aycan Çelikaksoy & Helena Nielsen & Mette Verner, 2006. "Marriage migration: just another case of positive assortative matching?," Review of Economics of the Household, Springer, vol. 4(3), pages 253-275, 09.
  5. George J. Borjas & Stephen J. Trejo, 1992. "National Origin and Immigrant Welfare Recipiency," NBER Working Papers 4029, National Bureau of Economic Research, Inc.
  6. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps," IZA Discussion Papers 365, Institute for the Study of Labor (IZA).
  7. 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.
  8. 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.
  9. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-51, April.
  10. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
  11. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. 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 43, Institute for the Study of Labor (IZA).
  2. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  3. Nisar Ahmad & Rayhaneh Esmaeilzadeh, 2009. "Immigrant-Native Differences in Earnings Mobility Processes: Evidence from Canadian and Danish Data," Economics Working Papers 2009-13, School of Economics and Management, University of Aarhus.
  4. Peder J. Pedersen, 2013. "Immigration and welfare state cash benefits: the Danish case," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 113-125, February.
  5. Chand, Sheetal K. & Paldam, Martin, . "The economics of immigration into a welfare state," Economics Working Papers 2003-18, School of Economics and Management, University of Aarhus.
  6. Drinkwater, Stephen & Robinson, Catherine, 2011. "Welfare Participation by Immigrants in the UK," IZA Discussion Papers 6144, Institute for the Study of Labor (IZA).
  7. Peter Huber & Doris A. Oberdabernig, 2014. "Decomposing Welfare Wedges. An Analysis of Welfare Dependence of Immigrants and Natives in Europe," WIFO Working Papers 459, WIFO.
  8. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
  9. Nisar Ahmad & Rayhaneh Esmaeilzadeh & J?rgen Hansen, 2014. "Immigrant-Native Differences in Earnings Mobility Processes," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 13-32, Feburary.
  10. Paldam, Martin, 2007. "Introduction to symposium `Immigration and the welfare state'," European Journal of Political Economy, Elsevier, vol. 23(2), pages 448-452, June.
  11. Sheetal K. Chand & Martin Paldam, 2004. "The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state," Economics Working Papers 2004-4, School of Economics and Management, University of Aarhus.
  12. Peter Huber & Doris A. Oberdabernig, 2013. "Does migration threaten the sustainability of European welfare states?," WWWforEurope Working Papers series 21, WWWforEurope.

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