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Immigration Participation in Social Assistance Programs

  • Riphahn, Regina T.

    ()

    (University of Erlangen-Nuremberg)

The share of foreigners in the German social assistance program exceeds their population share and continues to grow. This study tests whether higher foreigner welfare dependence is due to foreign-native differences in behavior as opposed to exogenous characteristics. The determinants of welfare dependence are analyzed using data from the German Socioeconomic Panel (1984-1996). Panel attrition and welfare dependence processes are modeled jointly. The difference in aggregate welfare dependence appears to be due to characteristics, where the household head=s labor market status and single parent status are central, with significant differences in the response rates of German and foreign households to given characteristics. The controls for attrition have strong effects on the estimation and simulation results.

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File URL: http://ftp.iza.org/dp15.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 15.

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Length: 43 pages
Date of creation: Jul 1998
Date of revision:
Publication status: published in: Applied Economics Quarterly, 2004, 50 (4), 329–362
Handle: RePEc:iza:izadps:dp15
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  1. Lee Lillard & James P. Smith & Finis Welch, 2004. "What Do We Really Know About Wages: The Importance of Nonreporting and Census Imputation," Labor and Demography 0404005, EconWPA.
  2. George J. Borjas & Lynette Hilton, 1995. "Immigration and the Welfare State: Immigrant Participation in Means- Tested Entitlement Programs," NBER Working Papers 5372, National Bureau of Economic Research, Inc.
  3. 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.
  4. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," CEPR Discussion Papers 905, C.E.P.R. Discussion Papers.
  5. 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.
  6. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
  7. George J. Borjas & Stephen J. Trejo, 1990. "Immigrant Participation in the Welfare System," NBER Working Papers 3423, National Bureau of Economic Research, Inc.
  8. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
  9. 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.
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