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Welfare dependency among Danish immigrants

  • Blume, Kraen
  • Verner, Mette

In this paper, we investigate determinants of the welfare dependency among immigrants in an assimilation framework. The duration of stay is a major determinant of welfare dependency. Also, assimilation patterns vary substantially across immigrants from developed and less devel-oped countries, respectively. The late arriving immigrants are relatively more dependent on transfers, explaining part of the general increase in welfare dependency during the latest years. This is partly attributed to the large variation in qualifications across cohorts of immigrants. Fur-thermore, the business cycle effects of immigrants appear to be considerably larger than for na-tives.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 23 (2007)
Issue (Month): 2 (June)
Pages: 453-471

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Handle: RePEc:eee:poleco:v:23:y:2007:i:2:p:453-471
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  1. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October.
  2. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2004. "Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps," Empirical Economics, Springer, vol. 29(4), pages 855-883, December.
  3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  4. Celikaksoy, Aycan & Nielsen, Helena Skyt & Verner, Mette, 2003. "Marriage Migration: Just another case of positive assortative matching?," Working Papers 03-27, University of Aarhus, Aarhus School of Business, Department of Economics.
  5. George J. Borjas & Lynette Hilton, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 575-604.
  6. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
  7. Jörgen Hansen & Magnus Lofstrom, 2010. "Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare," Working Papers id:2647, eSocialSciences.
  8. Kræn Blume Jensen & Mette Ejrnæs & Helena Skyt Nielsen & Allan Würtz, 2003. "Self-Employment among Immigrants: A Last Resort?," CAM Working Papers 2003-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  9. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, 03.
  10. George J. Borjas & Stephen J. Trejo, 1992. "National Origin and Immigrant Welfare Recipiency," NBER Working Papers 4029, National Bureau of Economic Research, Inc.
  11. Rachel M. Friedberg, 1996. "You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital," NBER Working Papers 5837, National Bureau of Economic Research, Inc.
  12. Michael Baker & Dwayne Benjamin, 1995. "The Receipt of Transfer Payments by Immigrants to Canada," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 650-676.
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