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Pitfalls of Immigrant Inclusion into the European Welfare State

Author

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  • Kahanec, Martin

    () (Central European University)

  • Kim, Anna Myunghee

    (IZA)

  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

This paper's main purpose is to gauge immigrants' demand for social assistance and services and identify the key barriers to social and labor market inclusion of immigrants in the European Union. The data from an online primary survey of experts from organizations working on immigrant integration in the EU is analyzed using simple comparative statistical methods; the robustness of the results is tested by means of Logit and ordered Logit statistical models. We find that the general public in Europe has rather negative attitudes towards immigrants. Although the business community views immigrants somewhat less negatively, barriers to immigrant labor market inclusion identified include language and human capital gaps, a lack of recognition of foreign qualifications, discrimination, intransparent labor markets and institutional barriers such as legal restrictions for foreign citizens. Exclusion from higher education, housing and the services of the financial sector aggravate these barriers. Changes in the areas of salaried employment, education, social insurance, mobility and attitudes are seen as most desired by members of ethnic minorities. The current economic downturn is believed to have increased the importance of active inclusion policies, especially in the areas of employment and education. These results appear to be robust with respect to a number of characteristics of respondents and their organizations.

Suggested Citation

  • Kahanec, Martin & Kim, Anna Myunghee & Zimmermann, Klaus F., 2011. "Pitfalls of Immigrant Inclusion into the European Welfare State," IZA Discussion Papers 6260, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6260
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    References listed on IDEAS

    as
    1. Constant, Amelie F. & Kahanec, Martin & Zimmermann, Klaus F., 2009. "Attitudes Towards Immigrants, Other Integration Barriers, and Their Veracity," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 5-14.
    2. 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).
    3. Corrado Giulietti & Martin Guzi & Martin Kahanec & Klaus F. Zimmermann, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 24-38, March.
    4. Robert Kaestner & Neeraj Kaushal, 2005. "Immigrant and native responses to welfare reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 69-92, July.
    5. Axel Heitmueller, 2005. "Unemployment benefits, risk aversion, and migration incentives," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 93-112, January.
    6. Alan Barrett & Yvonne McCarthy, 2008. "Immigrants and welfare programmes: exploring the interactions between immigrant characteristics, immigrant welfare dependence, and welfare policy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 543-560, Autumn.
    7. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    8. Drinkwater, Stephen & Eade, John & Garapich, Michal, 2006. "Poles Apart? EU Enlargement and the Labour Market Outcomes of Immigrants in the UK," IZA Discussion Papers 2410, Institute for the Study of Labor (IZA).
    9. Alan Barrett & Bertrand Maître, 2013. "Immigrant welfare receipt across Europe," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 8-23, March.
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    Cited by:

    1. Michael Fertig, 2013. "Mobility in an enlarging European Union: Projections of potential flows from EU's eastern neighbors and Croatia," Discussion Papers 18, Central European Labour Studies Institute (CELSI).
    2. Martin Kahanec, 2013. "Labor mobility in an enlarged European Union," Chapters,in: International Handbook on the Economics of Migration, chapter 7, pages 137-152 Edward Elgar Publishing.
    3. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    4. König, Jan & Skupnik, Christoph, 2012. "Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states," Discussion Papers 2012/5, Free University Berlin, School of Business & Economics.

    More about this item

    Keywords

    enlarged European Union; economic crisis; migration; labor market integration; ethnic minorities; welfare state;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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