IDEAS home Printed from https://ideas.repec.org/p/hhs/aareco/2006_006.html
   My bibliography  Save this paper

Welfare Dependency among Danish Immigrants

Author

Listed:
  • Blume, Kræn

    () (AKF)

  • Verner, Mette

    () (Department of Economics, Aarhus School of Business)

Abstract

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.

Suggested Citation

  • Blume, Kræn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers 06-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  • Handle: RePEc:hhs:aareco:2006_006
    Note: Forthcoming in European Journal of Political Economy
    as

    Download full text from publisher

    File URL: http://www.hha.dk/nat/wper/06-6_kbjmv.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    3. Aycan Çelikaksoy & Helena Nielsen & Mette Verner, 2006. "Marriage migration: just another case of positive assortative matching?," Review of Economics of the Household, Springer, vol. 4(3), pages 253-275, September.
    4. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    5. 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.
    6. 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, March.
    7. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    8. 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.
    9. 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 333-344, March.
    10. 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.
    11. Jensen, Kraen Blume & Ejrnaes, Mette & Nielsen, Helena Skyt & Würtz, Allan, "undated". "Self-Employment among Immigrants: A Last Resort?," Economics Working Papers 2003-13, Department of Economics and Business Economics, Aarhus University.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sheetal K. Chand & Martin Paldam, 2004. "The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state," Economics Working Papers 2004-4, Department of Economics and Business Economics, Aarhus University.
    2. Nisar Ahmad & Rayhaneh Esmaeilzadeh & J?rgen Hansen, 2014. "Immigrant-Native Differences in Earnings Mobility Processes," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 13-32, Feburary.
    3. Leonid V. Azarnert, 2018. "Refugee Resettlement, Redistribution and Growth," CESifo Working Paper Series 6961, CESifo Group Munich.
    4. Peder J. Pedersen, 2013. "Immigration and welfare state cash benefits: the Danish case," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 113-125, May.
    5. Peter Huber & Doris A. Oberdabernig, 2016. "Decomposing Welfare Wedges: An Analysis of Welfare Dependence of Immigrants and Natives in Europe," Kyklos, Wiley Blackwell, vol. 69(1), pages 82-107, February.
    6. Huber, Peter & Oberdabernig, Doris A., 2016. "The impact of welfare benefits on natives' and immigrants' attitudes toward immigration," European Journal of Political Economy, Elsevier, vol. 44(C), pages 53-78.
    7. Vadlamannati, Krishna Chaitanya & Kelly, Grace, 2017. "Welfare Chauvinism? Refugee Flows and Electoral Support for Populist-right Parties in Industrial Democracies," MPRA Paper 81816, University Library of Munich, Germany.
    8. Terrie Walmsley & Angel Aguiar & Syud Amer Ahmed, 2017. "Labour Migration and Economic Growth in East and South-East Asia," The World Economy, Wiley Blackwell, vol. 40(1), pages 116-139, January.
    9. Chand, Sheetal K. & Paldam, Martin, "undated". "The economics of immigration into a welfare state," Economics Working Papers 2003-18, Department of Economics and Business Economics, Aarhus University.
    10. Paldam, Martin, 2007. "Introduction to symposium `Immigration and the welfare state'," European Journal of Political Economy, Elsevier, vol. 23(2), pages 448-452, June.
    11. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers 2013/79, European University Institute.
    12. Stephen Drinkwater & Catherine Robinson, 2013. "Welfare participation by immigrants in the UK," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 100-112, May.
    13. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    14. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute for the Study of Labor (IZA).
    15. Nisar Ahmad & Rayhaneh Esmaeilzadeh, 2009. "Immigrant-Native Differences in Earnings Mobility Processes: Evidence from Canadian and Danish Data," Economics Working Papers 2009-13, Department of Economics and Business Economics, Aarhus University.
    16. Mari Kangasniemi & Merja Kauhanen, 2012. "Profiles of Estonian immigrants and their participation in the Finnish welfare system," Chapters,in: Migration Impact Assessment, chapter 12, pages 387-416 Edward Elgar Publishing.
    17. Peter Huber & Doris A. Oberdabernig, 2013. "Does migration threaten the sustainability of European welfare states?," WWWforEurope Working Papers series 21, WWWforEurope.
    18. Kaczmarczyk, Pawel, 2015. "Burden or Relief? Fiscal Impacts of Recent Ukrainian Migration to Poland," IZA Discussion Papers 8779, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Welfare dependency; transfers; immigrants; assimilation; two-limit tobit;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2006_006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt). General contact details of provider: http://edirc.repec.org/data/nihhadk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.