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Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?

  • Jorgen Hansen
  • Magnus Lofstrom

This paper analyzes differences in welfare utilization between immigrants and natives in Sweden using a large panel data set for the years 1990 to 1996. We find that immigrants use welfare to a greater extent than natives and that differences cannot be explained by observable characteristics. Welfare participation decreases with time spent in Sweden. Refugees assimilate out of welfare at a faster rate than nonrefugee immigrants, but neither group is predicted to reach parity with natives. Increases in unemployment and immigration, as well as the change in the composition of immigrants, contributed to the increase in welfare utilization in Sweden.

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File URL: http://jhr.uwpress.org/cgi/reprint/XXXVIII/1/74
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 38 (2003)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:38:y:2003:i:1:p74-98
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. 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.
  2. George J. Borjas & Stephen J. Trejo, 1990. "Immigrant Participation in the Welfare System," NBER Working Papers 3423, National Bureau of Economic Research, Inc.
  3. Thomas F. Crossley & James Ted McDonald & Christopher Worswick, 2001. "Immigrant Benefit Receipt Revisited: Sensitivity to the Choice of Survey Years and Model Specification," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 379-397.
  4. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  5. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
  6. Julian R. Betts & Magnus Lofstrom, 2000. "The Educational Attainment of Immigrants: Trends and Implications," NBER Chapters, in: Issues in the Economics of Immigration, pages 51-116 National Bureau of Economic Research, Inc.
  7. George J. Borjas, 1994. "Immigration and Welfare, 1970-1990," NBER Working Papers 4872, National Bureau of Economic Research, Inc.
  8. Borjas, George J & Hilton, Lynette, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 575-604, May.
  9. Borjas, George J. & Trejo, Stephen J., 1993. "National origin and immigrant welfare recipiency," Journal of Public Economics, Elsevier, vol. 50(3), pages 325-344, March.
  10. Francine D. Blau, 1984. "The use of transfer payments by immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(2), pages 222-239, January.
  11. Wei-Yin Hu, 1998. "Elderly Immigrants on Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 711-741.
  12. 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.
  13. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
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