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Immigrants on Welfare: Assimilation and Benefit Substitution

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  • Ekhaugen, Tyra

    (The Ragnar Frisch Centre for Economic Research)

Abstract

Non-western immigrants in Norway are shown to rely heavily on welfare transfers for several years after immigration. While refugee immigrants assimilate slightly out of welfare, other non-western immigrants assimilate rapidly into welfare. Re-migration is selective for both non-western and western immigrants, insofar as the probability of re-migration correlates negatively with the probability of receiving welfare. We argue that previous studies may have reached biased estimates of welfare assimilation, both because they have disregarded the possibility of selective re-migration, and because they have focused only on social assistance, not taking into account the possibility of benefit substitution.

Suggested Citation

  • Ekhaugen, Tyra, 2005. "Immigrants on Welfare: Assimilation and Benefit Substitution," Memorandum 18/2005, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2005_018
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2005/Memo-18-2005.pdf
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    References listed on IDEAS

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    4. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    5. 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.
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    7. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant Participation in the Welfare System," ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
    8. Erling Barth & Bernt Bratsberg & Oddbjørn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, March.
    9. Riphahn, Regina, 1999. "Immigrant Participation in Social Assistance Programs: Evidence from German Guestworkers," CEPR Discussion Papers 2318, C.E.P.R. Discussion Papers.
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    Citations

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    Cited by:

    1. Yu, Yip-Ching & Nimeh, Zina, 2020. "Segmented paths of welfare assimilation," MERIT Working Papers 2020-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Ekhaugen, Tyra, 2007. "Long-term Outcomes of Vocational Rehabilitation Programs: Labor Market Transitions and Job Durations for Immigrants," Memorandum 10/2007, Oslo University, Department of Economics.
    3. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute of Labor Economics (IZA).
    4. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 231-247, September.

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    More about this item

    Keywords

    immigrants; immigration; re-migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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