Public assistance receipt among immigrants and natives: How the unit of analysis affects research findings

Differences between immigrant and native households in rates of welfare receipt depend on nativity differences in individual-level rates of receipt, in household size, in mean number of recipients in receiving households, and in household nativity composition. We present algebraic derivations of these relationships and use data from the 1990 and 1991 panels of the Survey of Income and Program Participation to examine empirically the extent to which levels of welfare receipt for immigrants and natives are sensitive to the use of household-, family-, or individual-level units of analysis or presentation. The findings show that nativity differences are statistically significant only at the level of larger units. The results also indicate that if immigrants and natives had identical living arrangements, immigrants' household-level receipt of Supplemental Security Income would significantly exceed natives' receipt even more than it actually does, but the nativity difference in receipt of Aid to Families with Dependent Children (AFDC) would reverse directions. Moreover, the level of AFDC receipt of immigrant households falls significantly below that of native households when native-born children living in households headed by immigrants are treated as if they were foreign born.     

Social networks and the labour market mismatch

This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign born, ethnic concentration significantly increases the incidence of over-education. Using an Alternative Index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.     

Immigrant School Segregation in Sweden

Recent research has shown that there is a substantial skill difference in Sweden between natives and second-generation immigrants. The objective of this study is to find out whether there exists a relationship between immigrant school segregation and the individual’s human capital. The variation in immigrant concentration rate between cohorts within a school generally does not affect the individual’s human capital outcome. However when estimating specific peer influences between different immigrant groups (first-generation immigrants, second-generation immigrants with two foreign-born parent and second-generation immigrants with one foreign-born parent) the study shows three major findings. First, for men (both natives and second-generation immigrants) there is a general negative effect of having a large share of first-generation immigrant schoolmates. Second, for both men and women a large share of schoolmates with a completely foreign background (non-native parents) has a negative influence on the Swedish grades of second-generation immigrants with two foreign-born parents. Third, for men there seem to exist specific and positive peer influences within the groups of second-generation immigrants with either one or two foreign-born parents.     

Labor Market Segmentation and the Earnings of German Guestworkers

In this paper we study the occupational progress and earnings attainment of immigrants in Germany and compare them to native Germans. Our analysis is guided by the human capital, segmented labor market, and discrimination theories. To assess the separate effects of occupational segmentation and discrimination in the allocation of occupations and wages, we conceptualize the process of earnings attainment as occurring in three stages: initial occupational achievement, final occupational achievement after the accumulation of experience, and, contingent on the former, final earnings attainment. Our analysis of data from the German Socioeconomic Panel suggests a high degree of initial occupational segmentation, with mmigrants being less able to translate their human capital into a good first job than natives. We also find that immigrants experienced significant discrimination in the process of occupational attainment, yielding little job mobility over time, and a widening of the status gap between Germans and guestworkers. Holding occupational status constant, however, we find less evidence of direct discrimination in the process of earnings attainment. Although immigrants achieved lower rates of return to technical or vocational training than natives, their wage returns to experience, hours worked, years since migration, and academic high school were greater, yielding significant earnings mobility over time.     

Comparing Life Satisfaction of Immigrants and Natives Across Europe: The Role of Social Contacts

Research on immigrants’ assimilation is widespread both in the U.S. and Europe. While it has been extensively studied how immigrants fare compared to natives on socio-economic indicators, few studies have focussed on immigrants’ perception of their position. In this paper we focus on comparing life satisfaction of immigrants and natives across Europe and on the role of social embeddedness. Using data from the first six rounds (2002–2012) of the European Social Survey, a repeated cross-sectional survey, we find that life satisfaction among immigrants is lower than among natives even though differences diminish over generations. For first generation immigrants part of the life satisfaction gap is explained by the lower level of social embeddedness they have compared to natives. We also find that social embeddedness is a key explanatory factor for life satisfaction for both immigrants and natives. For two out of the three indicators of social embeddedness that we consider we however find different patterns of association with life satisfaction for immigrants compared to natives.     

Should the US have locked heaven��s door?

This paper examines the economic impact of the second great immigration wave (1945–2000) on the US economy. Our analysis relies on a computable general equilibrium model combining the major interactions between immigrants and natives (labor market impact, fiscal impact, capital deepening, endogenous education, endogenous inequality). Contrary to recent studies, we show that immigration induced important net gains and small redistributive effects among natives. According to our simulations, the postwar US immigration is beneficial for all natives cohorts and all skill groups. Nevertheless, the gains would have been larger if the US had conducted a more selective immigration policy.     

Welfare and the Children of Immigrants: Transmission of Dependence or Investment in the Future?

The public concern that immigrant families might be using a disproportionate share of social benefits and transmitting some form of public dependency to their children, combined with the rising levels of immigrants entering the country, fueled the passage of the Personal Responsibility and Work Opportunity Reconciliation Act in 1996, which limited public assistance to many immigrant families. This paper uses the National Longitudinal Survey of Youth 1997 to explore the association between exposure to welfare and young adult outcomes of high school graduation, college enrollment and labor force participation with a focus on parental nativity status as well as broad country of origin group. Results indicate a persistent negative association between welfare legacy and high school graduation; a negative association that is most pronounced for children of natives. Results also show the largest positive effect of welfare receipt among the most disadvantaged group, the young adult children of immigrants from Mexican and Central American countries. The main finding of this study suggests that the negative impacts of welfare receipt might be lessened and in some cases reversed among the young adults from immigrant families. Such findings challenge the common notion that immigrant families use welfare as a crutch across generations and raise serious concern about U.S. immigration and welfare policies.     

Ethnic diversity and well-being

This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.     

Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany

This study asks whether immigrants suffer more from unemployment than German natives. Differences between these groups in pre-unemployment characteristics, the type of the transition into unemployment, and the consequences of this transition suggest that factors intensifying the negative impact of unemployment on subjective well-being are more concentrated in immigrants than in natives. Based on longitudinal data from the German Socio-Economic Panel Study (1990–2014; N = 34,767 persons aged 20 to 64; N = 210,930 person-years), we used fixed-effects models to trace within-person change in subjective well-being across the transition from employment into unemployment and over several years of continued unemployment. Results showed that immigrants’ average declines in subjective well-being exceeded those of natives. Further analyses revealed gender interactions. Among women, declines were smaller and similar among immigrants and natives. Among men, declines were larger and differed between immigrants and natives. Immigrant men showed the largest declines, amounting to one standard deviation of within-person change over time in subjective well-being. Normative, social, and economic factors did not explain these disproportionate declines. We discuss alternative explanations for why immigrant men are most vulnerable to the adverse effects of unemployment in Germany.     

Targeting,Universalism, and Single-Mother Poverty: A Multilevel Analysis Across 18 Affluent Democracies

We examine the influence of individual characteristics and targeted and universal social policy on single-mother poverty with a multilevel analysis across 18 affluent Western democracies. Although single mothers are disproportionately poor in all countries, there is even more cross-national variation in single-mother poverty than in poverty among the overall population. By far, the United States has the highest rate of poverty among single mothers among affluent democracies. The analyses show that single-mother poverty is a function of the household’s employment, education, and age composition, and the presence of other adults in the household. Beyond individual characteristics, social policy exerts substantial influence on single-mother poverty. We find that two measures of universal social policy significantly reduce single-mother poverty. However, one measure of targeted social policy does not have significant effects, and another measure is significantly negative only when controlling for universal social policy. Moreover, the effects of universal social policy are larger. Additional analyses show that universal social policy does not have counterproductive consequences in terms of family structure or employment, while the results are less clear for targeted social policy. Although debates often focus on altering the behavior or characteristics of single mothers, welfare universalism could be an even more effective anti-poverty strategy.     

The impact of U.S. immigration upon internal migration

The potential adverse effect of immigrants on job opportunities for natives continues to influence debate about immigration policy in the United States. Many studies have examined wage and employment outcomes; by contrast, we examine internal migration. We ask whether or not natives are more likely to depart from or less likely to move to metropolitan areas with high concentrations of immigrants. After controlling for other influences on migration, we find that metropolitan areas with higher concentrations of immigrants have only slightly lower rates of inmigration of natives. Such metropolitan areas also exhibit slightly lower rates of out-migration, contrary to expectation. These results suggest that the effect of immigrants on labor market redistribution of natives is modest.Research reported here was supported by a grant from the Alfred P. Sloan Foundation. We would like to thank Kofi Benefo for helpful comments.     

The dynamics of immigrant welfare and labor market behavior

This paper analyzes transitions into and out of social assistance, unemployment, and employment. We estimate a dynamic multinomial logit model, controlling for endogenous initial condition and unobserved heterogeneity, using a large representative Swedish panel data set. The empirical results suggest that particularly refugee immigrants display a greater degree of “structural” state dependence than natives. The high welfare participation rates among refugee immigrants may be due to the existence of a “welfare trap”, while participation among natives and non-refugee immigrants is largely due to permanent unobserved characteristics. These results suggest that welfare reforms may have differential effects on refugee immigrants and natives.

Has immigration affected Spanish presidential elections results?

Between 1998 and 2008, the immigrant share in Spain jumped from less than 3 % to more than 13 %. We provide bounds on the effect of immigration inflows on natives’ election outcomes by considering alternative assumptions about nationalized immigrants’ participation rates and voting behavior. We find that Latin-American immigration increased natives’ participation rate and their support for the major leftist party (Socialist Workers’ Party) over the major conservative party (People’s Party (PP)). Conversely, African immigration only increased natives’ support for anti-immigration formations relative to the PP while leaving unaffected their participation rate. The estimated effects are of modest size in all cases. We provide suggestive evidence that economic factors cannot account for such a heterogeneity in the effects of interest by immigrants’ ethnic groups. We argue that Spanish natives’ attitudes towards immigrants are mainly driven by noneconomic factors like dissimilarities between natives and immigrants in language, religion, and race.     

Immigrants at new destinations: how they fare and why

We explore matched employer–employee data for a new destination of international migrants in Europe—Portugal. We conclude that the difference between the earnings of immigrants and natives with similar personal characteristics is for the most part due to the characteristics of the matches they form, immigrants being penalized on two different counts: absence of match-specific human capital and occupational downgrading. Moreover, we show that non-random sorting across workplaces has a significant detrimental effect on immigrants’ wages. This is the flip side of joining migrant-crowded workplaces.     

The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995

This paper examines the substitutability or complementarity between Canadian-born and immigrant workers. These are examined by estimating a set of wage equations using a generalized Leontief production function. The paper finds that, in general, there is no displacement of Canadian-born workers by immigrants. Recent immigrants affect the native-born positively, while older immigrants are neither substitute nor complement for natives. However, the effects differ across industries. Overall, the evidence that immigrants harm the opportunities of native-born workers is scant.

Immigration and Natives’ Attitudes towards the Welfare State: Evidence from the European Social Survey

Does immigration reduce natives’ support for the welfare state? Evidence from the European Social Survey (2002/2003) suggests a more qualified relation. For Europe as a whole, there is only weak evidence of a negative association between the perceived presence of immigrants and natives’ support for the welfare state. However, this weak average relationship masks considerable heterogeneity across countries. We distinguish two channels through which immigration could affect natives’ support for the welfare state: a pure dislike of immigrants and concerns about the economic consequences of immigration. We find that natives who hold both negative views react much more negatively to a given perceived share of immigrants than natives who hold neither view. However, there is no clear pattern concerning the relative importance of the two channels. Finally, we find that natives who hold either of these negative views of immigrants tend to be less supportive of the welfare state independently of the perceived presence of immigrants.     

Measuring Social Capital and Its Differentials by Family Structures

Social capital has often been invoked to explain differences in children’s well-being by family structure. That is, developmental outcome for children in lone or step parent family is not at par with that of children from intact family because parental investments on children may be lower not only in financial and human capital but also in social capital. This proposition has been difficult to examine in greater depth because of lack of conceptual clarity and of data to measure social capital. Using a definition of social capital as the “ability to secure benefits through membership in networks and other social structures”, we focus on the impact of family structures on social capital engendered by three types of networks: (a) informal ties with kin, families, friends, neighbours, and workmates; (b) generalized relationships with local people, people in civic groups, and people in general; and, (c) relationships through institutions. In particular, we examine differences in the measures of social capital among women living with no children in various marital arrangements, and women living with children in intact, step, and lone parent families. Data from the Canadian 2003 General Social Survey on Social Engagement confirm that social capital is indeed greater in intact families than in lone parent families. Mothers in intact families (especially married mothers) have larger informal networks, are members of more primordial and purposive organizations, have greater trust in people in the family, in the neighbourhood, and in people in general, and have greater confidence in government or business institutions. In general, social capital of mothers in step families is in between that of married mothers in intact families and lone mothers. Thus, the assumption in the literature that family structure can serve as a proxy for social capital may be justified. However, this study contributes a unique way of measuring social capital in terms of networks if and when data are available and a way of investigating the relationship between family structure and social capital; that is, the former as a determinant of the latter.     

Gender, Job Searching, and Employment Outcomes among Mexican Immigrants

Past quantitative research has typically disregarded the effect of gender on the relationship between social capital and immigrant adaptation. However, recent theory and qualitative evidence suggest that gender is a significant factor moderating this association. I use Mexican Migration Project (MMP) data regarding Mexican immigrant experiences in the U.S. to examine quantitatively how the process of job searching, and the effects of network-based job searching, vary by gender. Results show no evidence of overall sex differences in the likelihood of using network (i.e., family-based or friend-based) or individual (i.e., non-network) job search methods, but there are sex differences in the processes affecting job search method used. Settlement increases women’s use of their friend networks to obtain work, while for men, it decreases the use of networks of any kind. Contrary to conventional wisdom, women who use network-based job searches are less likely to obtain formal sector employment than women who find work without network assistance. Conversely, using network-based job searches increases the likelihood that men will find work in the formal sector. Since employment in the formal sector is correlated with wages, as well as nonwage benefits, this suggests that using networks in the job search has markedly different effects on the overall economic well-being of male and female Mexican immigrants in the U.S.     

Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply

This paper examines the consequences of labor immigration in an OLG economy in which agents have an elastic labor supply and differ with respect to degrees of altruism and rates of time preference. It focuses on three substantive questions. First, how do immigrants influence the bequest motive of altruistic natives? Second, what impact do immigrants have on the labor supply of natives? Finally, how does immigration affect the long-run welfare of both altruistic and non altruistic natives? Received: 25 November 1999/Accepted: 07 April 2000