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The Use of Welfare by Migrants in Italy

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  • Pellizzari, Michele

    ()
    (University of Geneva)

Abstract

A large part of the Italian welfare system is designed and implemented at the very local level, leading to a high degree of heterogeneity in the type and the generosity of available programs across the country. As a consequence, studies of welfare use based on standard household surveys may fail to consider a large part of welfare recipients and provisions. In this paper I overcome such a problem by combining the analysis of welfare use in the Italian sample of the European Survey of Incomes and Living Conditions (EU-SILC) with the investigation of a new administrative archive that contains information on means tests certificates needed for applying to all kind of locally administered welfare programs. Results show that, without controlling for observable characteristics, migrants from outside the EU are more likely to receive or apply for welfare. Once individual and household characteristics are controlled for, such a residual welfare dependency is greatly reduced but does not disappear. Geographical location is a key factor, given that migrants tend to locate in the richest areas of the country, which also happen to be the ones where the local welfare is most generous.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5613.

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Length: 31 pages
Date of creation: Apr 2011
Date of revision:
Publication status: published in: International Journal of Manpower, 2013, 34 (2), 155-166
Handle: RePEc:iza:izadps:dp5613

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Keywords: migration; welfare;

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References

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  1. Hansen, Jörgen & Löfström, Magnus, 2000. "Immigrant Assimilation And Welfare Participation: Do Immigrants Assimilate Into Or Out Of Welfare?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2430, C.E.P.R. Discussion Papers.
  2. Alan Barrett & Yvonne McCarthy, 2007. "Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence," LABOUR, CEIS, CEIS, vol. 21(4-5), pages 789-808, December.
  3. Bernt Bratsberg & Oddbjorn Raaum & Knut Roed, 2008. "When Minority Labor Migrants Meet the Welfare State," CReAM Discussion Paper Series 0817, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, Elsevier, vol. 54(1), pages 1-17, January.
  5. Massimo Baldini & Stefano Toso & Paolo Bosi, 2002. "Targeting welfare in Italy: old problems and perspectives on reform," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 23(1), pages 51-75, March.
  6. Kjetil Storesletten, . "Sustaining Fiscal Policy Through Immigration," Homapage Papers _005, Stockholm University, Institute for International Economic Studies.
  7. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, Elsevier, vol. 52(2), pages 295-316, April.
  8. Thomas Bauer & Gil S. Epstein & Ira N. Gang, 2009. "Measuring ethnic linkages among migrants," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 30(1/2), pages 56-69, May.
  9. Barrett, Alan & McCarthy, Yvonne, 2008. "Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy," IZA Discussion Papers 3494, Institute for the Study of Labor (IZA).
  10. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," Memorandum, Oslo University, Department of Economics 20/2002, Oslo University, Department of Economics.
  11. Francesca Mazzolari & Giuseppe Ragusa, 2013. "Spillovers from High-Skill Consumption to Low-Skill Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 74-86, March.
  12. Christian Dustmann & Tommaso Frattini & Caroline Halls, 2009. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," CReAM Discussion Paper Series 0918, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. Paul Winters & Alain de Janvry & Elisabeth Sadoulet, 2001. "Family and Community Networks in Mexico-U.S. Migration," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 159-184.
  14. Paola Monti & Michele Pellizzari, 2010. "Implementing a Guaranteed Minimum Income in Italy: An Empirical Analysis of Costs and Political Feasibility," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 69(1), pages 67-100, April.
  15. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages 529-54, July.
  16. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
  17. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, Elsevier, vol. 16(4), pages 353-363, August.
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Citations

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Cited by:
  1. Giulietti, Corrado & Wahba, Jackline, 2012. "Welfare Migration," IZA Discussion Papers 6450, Institute for the Study of Labor (IZA).
  2. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers, European University Institute 2013/79, European University Institute.
  3. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2011. "Immigration, Housing Discrimination and Employment," Working Papers 390, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  4. Peter Huber & Doris A. Oberdabernig, 2014. "Decomposing Welfare Wedges. An Analysis of Welfare Dependence of Immigrants and Natives in Europe," WIFO Working Papers, WIFO 459, WIFO.
  5. Peter Huber & Doris A. Oberdabernig, 2013. "Does migration threaten the sustainability of European welfare states?," WWWforEurope Working Papers series 21, WWWforEurope.
  6. Marchetti, Sabrina & Piazzalunga, Daniela & Venturini, Alessandra, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Countries Country Study: Italy," IZA Discussion Papers 7635, Institute for the Study of Labor (IZA).

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