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Does Immigration Weaken Natives' Support for the Welfare State?: Evidence from Germany

  • Holger Stichnoth

Using data from the 1997 and 2002 waves of the German Socio-Economic Panel and from official statistics, I study whether natives are less supportive of state help for the unemployed in regions where the share of foreigners among the unemployed is high. Unlike previous studies, I use individual-level panel data, which allows a more convincing identification of a causal effect. I find that the negative bivariate association is mainly driven by observed individual differences such as East German origin or income. While there remains some evidence of a negative association even after adjusting for individual differences (including time-invariant unobserved differences), the association is weak compared to the association with other variables such as income, self-employment, or East German origin.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.347699.de/diw_sp0272.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 272.

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Length: 58 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp272
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