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Immigrants in the UK and in West Germany – Relative Income Position, Income Portfolio, and Redistribution Effects

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Author Info
Büchel, Felix () (Max Planck Institute for Human Development, Technical University of Berlin, Free University of Berlin, DIW Berlin and IZA Bonn)
Frick, Joachim R. (DIW Berlin)

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Abstract

Based on data from the BHPS and the GSOEP, we analyse the economic performance of various ethnic groups in the UK and West Germany, as well as the effects of income redistribution on these populations. Taking the indigenous population of each country as the reference category, we find that, as a whole, the non-indigenous population in the UK fares much better than the immigrant population in Germany. However, the range of economic performance across different ethnic groups in the UK is much larger than that in Germany. The German corporatist welfare system is characterised by much stronger redistribution effects than the liberal UK one. Consequently, the relatively low-performing immigrant population in Germany profits more from the redistribution system than immigrants with similar socio-economic attributes in the UK.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 788.

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Length: 32 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:iza:izadps:dp788

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Related research
Keywords: immigration; migration policy; income redistribution;

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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  1. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "The Labour Market Position of Turkish Immigrants in Germany and the Netherlands: Reason for Migration, Naturalisation and Language Proficiency," IZA Discussion Papers 2683, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2006. "Immigration, Integration and the Labour Market," CPB Discussion Papers 75, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  4. Cigno, Alessandro & Luporini, Annalisa & Pettini, Anna, 2003. "Hidden Information Problems in the Design of Family Allowances," IZA Discussion Papers 790, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "The Labour Market Position of Turkish Immigrants in Germany and the Netherlands," CPB Discussion Papers 79, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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