Ethnic Enclaves and Welfare Cultures - Quasi-Experimental Evidence
38 Pages Posted: 24 Mar 2005
Date Written: March 2005
Abstract
We examine peer effects in welfare use among immigrants to Sweden by exploiting a governmental refugee placement policy. We distinguish between the quantity of contacts - the number of individuals of the same ethnicity - and the quality of contacts - welfare use among members of the ethnic group. OLS regressions suggest that both these factors are positively related to individual welfare use. Instrumental variables estimations yield the conclusion that only the quality of contacts matter. An increase of the fraction of the ethnic group on welfare by 10 percent raises the individual probability of welfare use by almost 7 percent.
Keywords: immigrants, welfare use, ethnic concentration, welfare cultures
JEL Classification: I38, J15
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Peer Effects with Random Assignment: Results for Dartmouth Roommates
-
Peer Effects with Random Assignment: Results for Dartmouth Roommates
-
The Company You Keep: The Effects of Family and Neighborhood on Disadvantaged Youths
By Anne Case and Lawrence F. Katz
-
Network Effects and Welfare Cultures
By Marianne Bertrand, Erzo F. P. Luttmer, ...
-
The Rise and Decline of the American Ghetto
By David M. Cutler, Edward L. Glaeser, ...