Labor Market Conditions and Post-Reform Declines in Welfare Receipt Among Immigrants
AbstractConsiderable research attention has been devoted to the question of whether and to what extent changes in welfare policy legislated in the 1990s might have deterred immigrant participation in welfare programs, although only post-1996 immigrants were explicitly targeted by most of the changes. Some analysts have argued that such so-called chilling effects have lowered immigrant participation, and others have argued that this is true only in California. This paper analyzes the role of local labor market conditions in explaining declines in the welfare participation trends of immigrants and reductions in the nativity participation gap for the period 1994 to 1999. The data, extracted from the March Current Population Survey, indicate that immigrants’ participation in welfare declined more rapidly than natives’ during the latter half of the decade. Our results show that variation in the unemployment and employment rates across MSAs and states explain the observed relative post-welfare reform decrease among immigrants, with immigrant welfare utilization being sensitive to changes in both employment and unemployment rates. The inclusion of state fixed effects in probability models suggests that the relative decline among immigrants is not due to unobservable heterogeneity across states, but rather to differences in local labor market conditions. The policy implications of the findings are discussed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 347.
Length: 40 pages
Date of creation: Aug 2001
Date of revision:
Publication status: published as 'Assessing Immigrant Policy Options: Labor Market Conditions and Postreform Declines in Immigrants' Receipt of Welfare' in: Demography, 2002, 39 (4), 617-637
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Cobb-Clark, Deborah A. & Hildebrand, Vincent A., 2002.
"The Wealth and Asset Holdings of U.S.- Born and Foreign-Born Households: Evidence from SIPP Data,"
IZA Discussion Papers
674, Institute for the Study of Labor (IZA).
- Deborah A. Cobb-Clark & Vincent A. Hildebrand, 2006. "The Wealth And Asset Holdings Of U.S.-Born And Foreign-Born Households: Evidence From Sipp Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 17-42, 03.
- Cobb-Clark, Deborah A. & Hildebrand, Vincent, 2003. "The wealth and asset holdings of U.S.-born and foreign-born households: Evidence from SIPP data," IRISS Working Paper Series 2003-07, IRISS at CEPS/INSTEAD.
- Deborah A. Cobb-Clark & Vincent Hildebrand, 2003. "The Wealth and Asset Holdings of U.S.-Born and Foreign-Born Households: Evidence from SIPP Data," Social and Economic Dimensions of an Aging Population Research Papers 89, McMaster University.
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
NBER Working Papers
8983, National Bureau of Economic Research, Inc.
- Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers halshs-00554261, HAL.
- Kerstin Gerst & Jeffrey Burr, 2011. "Welfare Use Among Older Hispanic Immigrants: The Effect of State and Federal Policy," Population Research and Policy Review, Springer, vol. 30(1), pages 129-150, February.
- Hansen, Jörgen & Lofstrom, Magnus, 2006. "Immigrant-Native Differences in Welfare Participation: The Role of Entry and Exit Rates," IZA Discussion Papers 2261, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.