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Immigrants in the UK and in West Germany – Relative Income Position, Income Portfolio, and Redistribution Effects

Author

Listed:
  • Büchel, Felix

    (Max Planck Institute for Human Development)

  • Frick, Joachim R.

    (DIW Berlin)

Abstract

Based on data from the BHPS and the GSOEP, we analyse the economic performance of various ethnic groups in the UK and West Germany, as well as the effects of income redistribution on these populations. Taking the indigenous population of each country as the reference category, we find that, as a whole, the non-indigenous population in the UK fares much better than the immigrant population in Germany. However, the range of economic performance across different ethnic groups in the UK is much larger than that in Germany. The German corporatist welfare system is characterised by much stronger redistribution effects than the liberal UK one. Consequently, the relatively low-performing immigrant population in Germany profits more from the redistribution system than immigrants with similar socio-economic attributes in the UK.

Suggested Citation

  • Büchel, Felix & Frick, Joachim R., 2003. "Immigrants in the UK and in West Germany – Relative Income Position, Income Portfolio, and Redistribution Effects," IZA Discussion Papers 788, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp788
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    Cited by:

    1. Euwals, Rob & Dagevos, Jaco & Gijsberts, Mérove & Roodenburg, Hans, 2007. "The Labour Market Position of Turkish Immigrants in Germany and the Netherlands: Reason for Migration, Naturalisation and Language Proficiency," IZA Discussion Papers 2683, Institute for the Study of Labor (IZA).
    2. Euwals, Rob & Dagevos, Jaco & Gijsberts, Mérove & Roodenburg, Hans, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute for the Study of Labor (IZA).
    3. Alessandro Cigno & Annalisa Luporini & Anna Pettini, 2004. "Hidden information problems in the design of family allowances," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 645-655, December.
    4. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    5. Bildirici, M. & Orcan, M. & Sunal, S. & Aykaç, E., 2005. "Determinants of Human Capital Theory, Growth and Brain Drain: An Econometric Analysis for 77 Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).
    6. repec:kap:reveho:v:15:y:2017:i:4:d:10.1007_s11150-015-9321-x is not listed on IDEAS
    7. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    8. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Rob Euwals & Hans Roodenburg & J. Dagevos & M. Gijsberts, 2007. "The labour market position of Turkish immigrants in Germany and the Netherlands; reason for migration, naturalisation and language proficiency," CPB Discussion Paper 79, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Rob Euwals & Hans Roodenburg & J. Dagevos & M. Gijsberts, 2006. "Immigration, integration and the labour market; Turkish immigrants in Germany and the Netherlands," CPB Discussion Paper 75, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Moshe Semyonov & Rebeca Raijman & Dina Maskileyson, 2015. "Ethnicity and Labor Market Incorporation of Post-1990 Immigrants in Israel," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(3), pages 331-359, June.
    12. AMETEPE Kossi & HARTMANN HIRSCH Claudia, 2010. "Eligibility and take up of social assistance for immigrants and nationals: the case of Luxembourg?," LISER Working Paper Series 2010-05, LISER.
    13. HARTMANN HIRSCH Claudia & AMETEPE Kossi, 2011. "Luxemburg's corporatist Scandinavian welfare system and incorporation of migrants," LISER Working Paper Series 2011-29, LISER.

    More about this item

    Keywords

    income redistribution; migration policy; immigration;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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