Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence, and Welfare Policy

Posted: 17 Jan 2009

See all articles by Alan Barrett

Alan Barrett

Economic and Social Research Institute; IZA Institute of Labor Economics

Yvonne McCarthy

Central Bank of Ireland

Multiple version iconThere are 2 versions of this paper

Date Written: Autumn 2008

Abstract

The primary purpose of this paper is to provide a review of the papers within the economics literature that have examined the questions of immigrant welfare use and the responsiveness of immigrants to the incentives created by welfare systems. While our focus is largely on papers looking at the European case, we also draw on studies from the United States, in particular on issues where the European literature is thin. One set of papers asks whether immigrants who are more likely to use welfare are attracted to more generous welfare states. The results from these papers are not clear-cut. Another set of papers asks if immigrants use welfare more intensively than natives and if they assimilate out of or into welfare participation. In most cases, the unadjusted data show higher use of welfare by immigrants, although for some countries, for example Germany, this can be explained by differences in immigrants’ characteristics. Yet another set of papers finds that the rate of welfare use by existing migrants can influence the welfare use of newly arrived co-nationals. We illustrate some of these issues by looking at immigrant welfare use in Ireland and the UK. Immigrants in the UK appear to use welfare more intensively than natives, but the opposite appears to be the case in Ireland.

Keywords: immigrants, welfare participation, Ireland, UK, I38, J61

Suggested Citation

Barrett, Alan M. and McCarthy, Yvonne, Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence, and Welfare Policy (Autumn 2008). Oxford Review of Economic Policy, Vol. 24, Issue 3, pp. 543-560, 2008, Available at SSRN: https://ssrn.com/abstract=1327656 or http://dx.doi.org/grn026

Alan M. Barrett (Contact Author)

Economic and Social Research Institute ( email )

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IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Yvonne McCarthy

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

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