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

32 Pages Posted: 23 Jun 2003

See all articles by Felix Büchel

Felix Büchel

Max Planck Institute for Human Development; Institute for the Study of Labor (IZA)

Joachim R. Frick

German Institute for Economic Research (DIW Berlin) (Deceased) ; Institute for the Study of Labor (IZA) (Deceased)

Date Written: June 2003

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 socioeconomic attributes in the UK.

Keywords: Immigration, Migration Policy, Income Redistribution

JEL Classification: J15, J18, D31

Suggested Citation

Büchel, Felix and Frick, Joachim R., Immigrants in the UK and in West Germany - Relative Income Position, Income Portfolio, and Redistribution Effects (June 2003). Available at SSRN: https://ssrn.com/abstract=418601

Felix Büchel (Contact Author)

Max Planck Institute for Human Development ( email )

Lentzeallee 94
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Germany
+49 30 8240 6427 (Phone)
+49 30 8249 939 (Fax)

Institute for the Study of Labor (IZA)

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

Joachim R. Frick

German Institute for Economic Research (DIW Berlin) (Deceased) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Institute for the Study of Labor (IZA) (Deceased)

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

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