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Immigration and Welfare State Cash Benefits: The Danish Case

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  • Pedersen, Peder J.

    ()
    (Aarhus University)

Abstract

The purpose in this paper is to summarize existing evidence on welfare dependence among immigrants in Denmark and to supply new evidence with focus on the most recent years. Focus is on immigrants from non-western countries. The paper contains an overview of the background regarding immigration in recent decades followed by a survey of relevant benefit programmes in the Danish welfare state. Existing studies focus on both macro analyses of the overall impact from immigration on the public sector budget and on micro oriented studies with focus on specific welfare programs. Existing studies focus on the importance for welfare dependence of demographic variables, on the big variation between countries of origin and on the importance of cyclical factors at time of entry and during the first years in the new country. Evidence from the most recent years reinforce the importance of aggregate low unemployment in contrast to fairly small effects found from policy changes intending to influence the economic incentives between welfare and a job for immigrants.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6220.

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Length: 36 pages
Date of creation: Dec 2011
Date of revision:
Publication status: published in: International Journal of Manpower, 2013, 34 (2), 113-125
Handle: RePEc:iza:izadps:dp6220

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Keywords: effects of welfare programs; general welfare programs; immigration;

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  1. Nannestad, Peter, 2004. "Immigration as a challenge to the Danish welfare state?," European Journal of Political Economy, Elsevier, Elsevier, vol. 20(3), pages 755-767, September.
  2. Blume, Kr├Žn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 06-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  3. Rosholm, Michael & Vejlin, Rune, 2010. "Reducing income transfers to refugee immigrants: Does start-help help you start?," Labour Economics, Elsevier, Elsevier, vol. 17(1), pages 258-275, January.
  4. Alan Barrett & Yvonne McCarthy, 2008. "Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy," Papers, Economic and Social Research Institute (ESRI) WP238, Economic and Social Research Institute (ESRI).
  5. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2009. "The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark," Labour Economics, Elsevier, Elsevier, vol. 16(4), pages 409-417, August.
  6. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, Elsevier, vol. 23(2), pages 512-532, June.
  7. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, Elsevier, vol. 52(7), pages 1160-1186, October.
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