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Immigrant-Native Differences in Welfare Participation: The Role of Entry and Exit Rates

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Author Info

  • Hansen, Jörgen

    ()
    (Concordia University)

  • Lofstrom, Magnus

    ()
    (Public Policy Institute of California)

Abstract

This paper analyzes differences in welfare transitions between natives and immigrants in Sweden using a large representative panel data set, LINDA, for the years 1991 to 2001. The data contains administrative information on welfare use, country of birth, and time of arrival in Sweden among other things, and provides an excellent opportunity to examine immigrant-native differences in welfare use. The empirical results suggest that the main reason for the large immigrant-native welfare gap observed in the data is differences in welfare entry rates. Thus, policies aimed to reduce these transitions may be particularly successful in reducing welfare use in general and the immigrant-native welfare gap in particular.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2261.

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Length: 50 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Industrial Relations, 2011, 50 (3), 412 - 442
Handle: RePEc:iza:izadps:dp2261

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Related research

Keywords: labor market behavior; immigration; welfare; transition; state dependence;

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References

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  1. Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
  2. 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.
  3. 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).
  4. Hansen, Jörgen & Löfström, Magnus, 2001. "The Dynamics of Immigrant Welfare and Labour Market Behaviour," CEPR Discussion Papers 3028, C.E.P.R. Discussion Papers.
  5. Eberwein, Curtis & Ham, John C & LaLonde, Robert J, 1997. "The Impact of Being Offered and Receiving Classroom Training on the Employment Histories of Disadvantaged Women: Evidence from Experimental Data," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 655-82, October.
  6. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
  7. Hansen, Jörgen & Lofstrom, Magnus, 1999. "Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare," IZA Discussion Papers 100, Institute for the Study of Labor (IZA).
  8. 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.
  9. Plant, Mark W, 1984. "An Empirical Analysis of Welfare Dependence," American Economic Review, American Economic Association, vol. 74(4), pages 673-84, September.
  10. Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
  11. Arellano, Manuel & Carrasco, Raquel, 2003. "Binary choice panel data models with predetermined variables," Journal of Econometrics, Elsevier, vol. 115(1), pages 125-157, July.
  12. Lofstrom, Magnus & Bean, Frank D., 2001. "Labor Market Conditions and Post-Reform Declines in Welfare Receipt Among Immigrants," IZA Discussion Papers 347, Institute for the Study of Labor (IZA).
  13. Borjas, George J & Hilton, Lynette, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 575-604, May.
  14. Edin, P.-A. & Fredriksson, P., 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Papers 2000-19, Uppsala - Working Paper Series.
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Citations

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Cited by:
  1. Andrén, Daniela & Andrén, Thomas, 2013. "State dependence in Swedish social assistance," Working Papers 2013:7, Örebro University, School of Business.
  2. Thomas Andrén & Daniela Andrén, 2013. "Never give up? The persistence of welfare participation in Sweden," IZA Journal of European Labor Studies, Springer, vol. 2(1), pages 1-21, December.
  3. 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.
  4. Andrén, Thomas, 2007. "The Persistence of Welfare Participation," Working Papers in Economics 266, University of Gothenburg, Department of Economics.
  5. Lorenzo Cappellari & Stephen P. Jenkins, 2008. "The Dynamics of Social Assistance Receipt: Measurement and Modelling Issues, with an Application to Britain," Discussion Papers of DIW Berlin 828, DIW Berlin, German Institute for Economic Research.
  6. Corsi, A. & Salvioni, C., 2013. "Off-farm labour participation of Italian farmers, state dependence and the CAP reform," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149886, Italian Association of Agricultural and Applied Economics (AIEAA).
  7. Hansen, Jörgen & Lofstrom, Magnus, 2001. "The Dynamics of Immigrant Welfare and Labor Market Behavior," IZA Discussion Papers 360, Institute for the Study of Labor (IZA).
  8. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute for the Study of Labor (IZA).
  9. 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).
  10. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(3), pages 231-247, September.
  11. Nathan Berg & Todd Gabel, 2013. "Effects of New Welfare Reform Strategies on Welfare Participation: Microdata Estimates from Canada," Working Papers 1304, University of Otago, Department of Economics, revised Feb 2013.
  12. Pablo Swedberg, 2010. "The impact of education and host language skills on the labor market outcomes of immigrants in Spain," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Greg (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 41, pages 798-824 Asociación de Economía de la Educación.

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