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Immigrants and the Use of Government Transfer Payments

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  • S. A. Maani

Abstract

This article examines the use of government benefits and allowances by Australian immigrants relative to their native‐born counterparts. The study extends the Australian literature by employing micro‐level (Australian Longitudinal Survey) data, controlling for a number of relevant variables including first or second generation immigrant status and the nature of transfer payments received. The data on young adults employed in the study provide a comparable population for examining the relative use of benefits among those of similar age, allowing comparisons based on only the relevant types of benefits. The results consistently reject the hypothesis that immigrants are disproportionately using benefit payments and thereby imposing a burden on public funds. These results are of interest, especially since Australia is already a major immigrant‐receiving country, and since the Australian welfare system is more extensive in its coverage than most other immigrant‐receiving countries.

Suggested Citation

  • S. A. Maani, 1993. "Immigrants and the Use of Government Transfer Payments," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 26(4), pages 65-76, October.
  • Handle: RePEc:bla:ausecr:v:26:y:1993:i:4:p:65-76
    DOI: 10.1111/j.1467-8462.1993.tb00812.x
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    File URL: https://doi.org/10.1111/j.1467-8462.1993.tb00812.x
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    References listed on IDEAS

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    1. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant Participation in the Welfare System," ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
    2. George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Eva Moreno-Galbis, 2020. "Minimum wage and immigrants' participation in the welfare system: evidence from France," Working Papers halshs-02862874, HAL.
    2. Thomas K. Bauer, 2002. "Migration, Sozialstaat und Zuwanderungspolitik," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 71(2), pages 249-271.
    3. Daina McDonald, 2006. "150 Issues of The Australian Economic Review: The Changing Face of a Journal over Time," Melbourne Institute Working Paper Series wp2006n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    5. Núria Rodríguez-Planas, 2013. "Determinants of immigrants’ cash-welfare benefits intake in Spain," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 167-180, May.

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