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Welfare and the locational choices of new immigrants

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  • Madeline Zavodny

Abstract

The 1996 welfare law ends most noncitizens' eligibility for federally funded public assistance programs and allows states to cut off payments under other welfare programs to noncitizens. If some states choose to continue extending benefits while others terminate payments to immigrants, interstate differentials in welfare generosity will widen. Potential policy differences create concern that states that continue to offer benefits to immigrants will become welfare magnets. ; In this article, Madeline Zavodny examines whether welfare generosity is correlated with the number of new immigrants arriving in a state in 1982 and 1992. The data indicate that welfare payments are not correlated with immigration levels; rather, the presence of earlier immigrants is the primary determinant of the locational choices of new immigrants.

Suggested Citation

  • Madeline Zavodny, 1997. "Welfare and the locational choices of new immigrants," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-10.
  • Handle: RePEc:fip:fedder:y:1997:i:qii:p:2-10
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    File URL: http://www.dallasfed.org/assets/documents/research/er/1997/er9702a.pdf
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    References listed on IDEAS

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    1. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1989. "The Revenues-Expenditures Nexus: Evidence from Local Government Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 415-429, May.
    2. Buckley, F. H., 1996. "The political economy of immigration policies," International Review of Law and Economics, Elsevier, vol. 16(1), pages 81-99, March.
    3. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
    4. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    5. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
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    Citations

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    Cited by:

    1. René Böheim & Karin Mayr, 2005. "Immigration and public spending," Economics working papers 2005-12, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
    3. Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publication 60, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Mariano Bosch & M. Carnero & Lídia Farré, 2015. "Rental housing discrimination and the persistence of ethnic enclaves," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(2), pages 129-152, June.
    5. Saenz, Mariana & Lewer, Joshua J., 2015. "Colombian Emigration by Administrative Regions," IZA Discussion Papers 9514, Institute for the Study of Labor (IZA).
    6. Uwaifo Oyelere, Ruth & Oyolola, Maharouf, 2009. "Welfare Usage in the U.S.: Does Immigrant Birthplace and Immigration Status Matter?," IZA Discussion Papers 4659, Institute for the Study of Labor (IZA).
    7. Aslund, O., 2000. "Immigrant Settlement Policies and Subsequent Migration," Papers 2000-23, Uppsala - Working Paper Series.
    8. Piil Damm, Anna, 2005. "Immigrants’ Location Preferences: Exploiting a Natural Experiment," Working Papers 05-2, University of Aarhus, Aarhus School of Business, Department of Economics.
    9. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign Students and Migration to the United States," World Development, Elsevier, vol. 39(8), pages 1294-1307, August.
    10. Miriam Manchin & Sultan Orazbayev, 2016. "Social networks and the intention to migrate," Development Working Papers 409, Centro Studi Luca d'Agliano, University of Milano, revised 01 Dec 2016.
    11. Tu, Jiong, 2010. "The Effect of Enclave Residence on the Labour Force Activities of Immigrants in Canada," IZA Discussion Papers 4744, Institute for the Study of Labor (IZA).
    12. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA).
    13. Dodson, Marvin E., 2001. "Welfare generosity and location choices among new United States immigrants," International Review of Law and Economics, Elsevier, vol. 21(1), pages 47-67, March.
    14. Gemma Larramona & Marcos Sanso-Navarro, 2016. "Do Regularization Programs for Illegal Immigrants Have a Magnet Effect? Evidence from Spain," Manchester School, University of Manchester, vol. 84(2), pages 296-311, March.
    15. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
    16. Piil Damm, Anna, 2005. "The Danish Dispersal Policy on Refugee Immigrants 1986-1998: A Natural Experiment?," Working Papers 05-3, University of Aarhus, Aarhus School of Business, Department of Economics.
    17. 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.
    18. Ludo Peeters & Coro Chasco, 2016. "Identifying local determinants of destination choices of international immigrants to the Madrid metropolitan area," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 281-307, June.
    19. Roberto Pedace & Stephanie Rohn Kumar, 2014. "A Warm Embrace Or The Cold Shoulder? Wage And Employment Outcomes In Ethnic Enclaves," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 93-110, January.
    20. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
    21. Libman, Alexander & Herrmann-Pillath, Carsten & Yadav, Gaurav, 2013. "Are human rights and economic well-being substitutes? The evidence from migration patterns across the Indian states," European Journal of Political Economy, Elsevier, vol. 31(C), pages 139-164.
    22. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics.

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    Keywords

    Emigration and immigration ; Welfare;

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