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Immigrant–Native Differences in Welfare Participation: The Role of Entry and Exit Rates

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  • JORGEN HANSEN
  • MAGNUS LOFSTROM

Abstract

This paper analyzes differences in welfare transitions between natives and immigrants in Sweden using a large representative panel data set, LINDA, for the years 1991 to 2001. The data contains administrative information on welfare use, country of birth, and time of arrival in Sweden among other things, and provides an excellent opportunity to examine immigrant-native differences in welfare use. The empirical results suggest that the main reason for the large immigrant-native welfare gap observed in the data is differences in welfare entry rates. Thus, policies aimed to reduce these transitions may be particularly successful in reducing welfare use in general and the immigrant-native welfare gap in particular.
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  • Jorgen Hansen & Magnus Lofstrom, 2011. "Immigrant–Native Differences in Welfare Participation: The Role of Entry and Exit Rates," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 412-442, July.
    • Handle: RePEc:bla:indres:v:50:y:2011:i:3:p:412-442
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    Cited by:

    1. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute of Labor Economics (IZA).
    2. Thomas Andrén & Daniela Andrén, 2013. "Never give up? The persistence of welfare participation in Sweden," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    3. Cappellari, Lorenzo & Jenkins, Stephen P., 2008. "The Dynamics of Social Assistance Receipt: Measurement and Modelling Issues, with an Application to Britain," IZA Discussion Papers 3765, Institute of Labor Economics (IZA).
    4. Persson, Anna & V ikman, Ulrika, 2010. "Dynamic effects of mandatory activation of welfare participants," Working Paper Series 2010:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Wunder, Christoph & Riphahn, Regina, 2013. "Welfare transitions before and after reforms of the German welfare system," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79715, Verein für Socialpolitik / German Economic Association.
    6. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2020. "Immigrant Responses to Social Insurance Generosity," Labour Economics, Elsevier, vol. 65(C).
    7. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2021. "Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2803-2854.
    8. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2017. "Time Aggregation and State Dependence in Welfare Receipt," Economic Journal, Royal Economic Society, vol. 127(604), pages 1833-1873, September.
    9. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    10. Andrén, Thomas, 2007. "The Persistence of Welfare Participation," IZA Discussion Papers 3100, Institute of Labor Economics (IZA).
    11. Sebastian Königs, 2013. "The Dynamics of Social Assistance Benefit Receipt in Germany: State Dependence Before and After the Hartz Reforms," OECD Social, Employment and Migration Working Papers 136, OECD Publishing.
    12. Mosthaf, Alexander & Schank, Thorsten & Schwarz, Stefan, 2021. "Do Supplementary Jobs for Welfare Recipients Increase the Chance of Welfare Exit? Evidence from Germany," IZA Discussion Papers 14268, Institute of Labor Economics (IZA).
    13. Pablo Swedberg, 2010. "The impact of education and host language skills on the labor market outcomes of immigrants in Spain," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Gregorio Gim (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 41, pages 798-824, Asociación de Economía de la Educación.
    14. Martin Kahanec & Klaus F. Zimmermann, 2008. "Migration in an Enlarged EU: A Challenging Solution?," Discussion Papers of DIW Berlin 849, DIW Berlin, German Institute for Economic Research.
    15. Corsi, A. & Salvioni, C., 2013. "Off-farm labour participation of Italian farmers, state dependence and the CAP reform," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149886, Italian Association of Agricultural and Applied Economics (AIEAA).
    16. Regina T. Riphahn & Christoph Wunder, 2016. "State dependence in welfare receipt: transitions before and after a reform," Empirical Economics, Springer, vol. 50(4), pages 1303-1329, June.
    17. Chris Dawson & Michail Veliziotis & Benjamin Hopkins, 2018. "Understanding the Perception of the ‘Migrant Work Ethic’," Work, Employment & Society, British Sociological Association, vol. 32(5), pages 811-830, October.
    18. Jorgen Hansen & Magnus Lofstrom, 2011. "Immigrant–Native Differences in Welfare Participation: The Role of Entry and Exit Rates," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 412-442, July.
    19. Andrén, Daniela & Andrén, Thomas, 2013. "State dependence in Swedish social assistance," Working Papers 2013:7, Örebro University, School of Business.
    20. Immervoll, Herwig & Jenkins, Stephen P. & Königs, Sebastian, 2015. "Are Recipients of Social Assistance 'Benefit Dependent'? Concepts, Measurement and Results for Selected Countries," IZA Discussion Papers 8786, Institute of Labor Economics (IZA).
    21. Ruth Uwaifo Oyelere & Maharouf Oyolola, 2011. "Do Immigrant Groups Differ in Welfare Usage? Evidence from the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 231-247, September.
    22. Alexander Mosthaf & Thorsten Schank & Stefan Schwarz, 2024. "Do supplementary jobs for welfare recipients increase the chance of welfare exit? Evidence from Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(3), pages 291-324, July.
    23. Nathan Berg & Todd Gabel, 2013. "Effects of New Welfare Reform Strategies on Welfare Participation: Microdata Estimates from Canada," Working Papers 1304, University of Otago, Department of Economics, revised Feb 2013.
    24. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute of Labor Economics (IZA).
    25. Sarah Carpentier & Karel Neels & Karel Van den Bosch, 2017. "Do First- and Second-Generation Migrants Stay Longer in Social Assistance Than Natives in Belgium?," Journal of International Migration and Integration, Springer, vol. 18(4), pages 1167-1190, November.

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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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