Immigrant Participation in Social Assistance Programs

42 Pages Posted: 11 Dec 2000

See all articles by Regina T. Riphahn

Regina T. Riphahn

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: July 1998

Abstract

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 modelled 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.

JEL Classification: I38, J61

Suggested Citation

Riphahn, Regina T., Immigrant Participation in Social Assistance Programs (July 1998). IZA Discussion Paper No. 15. Available at SSRN: https://ssrn.com/abstract=166352

Regina T. Riphahn (Contact Author)

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics ( email )

Lange Gasse 20
Nuernberg, D-90403
Germany

IZA Institute of Labor Economics

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

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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