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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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    File URL: http://hdl.handle.net/10.1111/j.1468-232X.2011.00644.x
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    Cited by:

    1. 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.
    2. 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).
    3. Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration in an Enlarged EU: A Challenging Solution?," IZA Discussion Papers 3913, Institute of Labor Economics (IZA).
    4. 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).
    5. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2020. "Immigrant Responses to Social Insurance Generosity," Labour Economics, Elsevier, vol. 65(C).
    6. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2020. "Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes," CReAM Discussion Paper Series 2010, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    7. 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.
    8. Andrén, Thomas, 2007. "The Persistence of Welfare Participation," Working Papers in Economics 266, University of Gothenburg, Department of Economics.
    9. 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).
    10. 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.
    11. Persson, Anna & Vikman, Ulrika, 2010. "Dynamic effects of mandatory activation of welfare participants," Working Paper Series, Center for Labor Studies 2010:11, Uppsala University, Department of Economics.
    12. Andrén, Daniela & Andrén, Thomas, 2013. "State dependence in Swedish social assistance," Working Papers 2013:7, Örebro University, School of Business.
    13. 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.
    14. 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.
    15. 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).
    16. 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.

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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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