[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2020036.html
   My bibliography  Save this paper

Segmented paths of welfare assimilation

Author

Listed:
  • Yu, Yip-Ching

    (UNU-MERIT, Maastricht University)

  • Nimeh, Zina

    (UNU-MERIT, Maastricht University)

Abstract
This paper investigates the extent to which first-generation immigrants in the Netherlands undergo segmented paths of welfare assimilation and its underlying mechanism. Using unique longitudinal panel administrative data (2007-2015) based on the entire Dutch population from Statistics Netherlands (CBS), we estimate the trajectories of immigrant welfare utilization over the working-age life course, which is employed as an indicator of economic marginalization, vis-à-vis those of two base groups from the native populations representing different economic segments of the host country, namely: average Dutch natives and Dutch natives with low education level. The results show that, while mainstream assimilation is the dominant trend, it is not a common path for all. The risk of persistent marginalization exists and concentrates among first-generation immigrants characterized by structural and human capital disadvantages, despite their aspiration to integrate and notable degrees of upward mobilities. The worst scenario projected is a lack of assimilation to neither segment, suggesting prospective emergence of an ethnic underclass at the bottom of the economic ladder. The main policy implications are twofold. First, automatic closing of the immigrant-native gap over time should not be presumed if a level playing field is not provided for all regardless of their type of immigration and ethnic background. Second, the need for distinction between immigration policy and refugee policy should not be obscured by the consolidation of immigrants as one homogenous group, as systematic discrepancy is being observed between refugees and other types of migrants in both the patterns and mechanisms of welfare assimilation.

Suggested Citation

  • Yu, Yip-Ching & Nimeh, Zina, 2020. "Segmented paths of welfare assimilation," MERIT Working Papers 2020-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020036
    as

    Download full text from publisher

    File URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-036.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Neeraj Kaushal & Yao Lu & Nicole Denier & Julia Shu-Huah Wang & Stephen J. Trejo, 2016. "Immigrant employment and earnings growth in Canada and the USA: evidence from longitudinal data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1249-1277, October.
    2. Hans Roodenburg & Rob Euwals & Harry ter Rele, 2003. "Immigration and the Dutch economy," CPB Special Publication 47, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    4. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54, January.
    6. Cappellari, Lorenzo & Jenkins, Stephen P., 2008. "The Dynamics of Social Assistance Receipt: Measurement and Modelling Issues, with an Application to Britain," IZA Discussion Papers 3765, Institute of Labor Economics (IZA).
    7. Åslund, Olof & Böhlmark, Anders & Nordström Skans, Oskar, 2009. "Age at migration and social integration," Working Paper Series 2009:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    9. Regina T. Riphahn & Monika Sander & Christoph Wunder, 2013. "The welfare use of immigrants and natives in Germany: the case of Turkish immigrants," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(1), pages 70-82, March.
    10. Ken Clark & Joanne Kathryn Lindley, 2005. "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the Labour Force Survey," Working Papers 2005004, The University of Sheffield, Department of Economics, revised Jan 2005.
    11. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760, Elsevier.
    12. Matti Sarvimäki, 2011. "Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 665-688, September.
    13. George J. Borjas & Lynette Hilton, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 575-604.
    14. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    15. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    16. Aslan Zorlu, 2013. "Welfare use of migrants in The Netherlands," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(1), pages 83-95, March.
    17. Barry R. Chiswick & Paul W. Miller, 2012. "Negative and Positive Assimilation, Skill Transferability, and Linguistic Distance," Journal of Human Capital, University of Chicago Press, vol. 6(1), pages 35-55.
    18. Wiji Arulampalam & Mark B. Stewart, 2009. "Simplified Implementation of the Heckman Estimator of the Dynamic Probit Model and a Comparison with Alternative Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(5), pages 659-681, October.
    19. Borjas, George J. & Trejo, Stephen J., 1993. "National origin and immigrant welfare recipiency," Journal of Public Economics, Elsevier, vol. 50(3), pages 325-344, March.
    20. Charles Hirschman, 2001. "The educational enrollment of immigrant youth: A test of the segmented-assimilation hypothesis," Demography, Springer;Population Association of America (PAA), vol. 38(3), pages 317-336, August.
    21. Blume, Kraen & Verner, Mette, 2007. "Welfare dependency among Danish immigrants," European Journal of Political Economy, Elsevier, vol. 23(2), pages 453-471, June.
    22. Deborah Cobb-Clark & Barbara Hanel & Duncan McVicar, 2012. "Immigrant Wage and Employment Assimilation: A Comparison of Methods," Melbourne Institute Working Paper Series wp2012n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    23. George J. Borjas, 2021. "The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 3, pages 31-65, World Scientific Publishing Co. Pte. Ltd..
    24. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    25. Alpaslan Akay, 2016. "Dynamics of employment assimilation," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-22, December.
    26. Ekhaugen, Tyra, 2005. "Immigrants on Welfare: Assimilation and Benefit Substitution," Memorandum 18/2005, Oslo University, Department of Economics.
    27. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant Participation in the Welfare System," ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
    28. Bevelander, Pieter & Pendakur, Ravi, 2009. "Citizenship, Co-ethnic Populations and Employment Probabilities of Immigrants in Sweden," IZA Discussion Papers 4495, Institute of Labor Economics (IZA).
    29. Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publication 60.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    30. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 485-503, December.
    31. Thomas F. Crossley & James Ted McDonald & Christopher Worswick, 2001. "Immigrant Benefit Receipt Revisited: Sensitivity to the Choice of Survey Years and Model Specification," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 379-397.
    32. Erling Barth & Bernt Bratsberg & Oddbjørn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, March.
    33. Akay, Alpaslan, 2007. "Dynamics of Employment- and Earnings-Assimilation of First-Generation Immigrant Men in Sweden, 1990-2000," Working Papers in Economics 279, University of Gothenburg, Department of Economics.
    34. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    2. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers 2013/79, European University Institute.
    3. Kaczmarczyk, Pawel, 2015. "Burden or Relief? Fiscal Impacts of Recent Ukrainian Migration to Poland," IZA Discussion Papers 8779, Institute of Labor Economics (IZA).
    4. Akay, Alpaslan, 2009. "Dynamics of the Employment Assimilation of First-Generation Immigrant Men in Sweden: Comparing Dynamic and Static Assimilation Models with Longitudinal Data," IZA Discussion Papers 4655, Institute of Labor Economics (IZA).
    5. Rob Euwals & Hans Roodenburg & J. Dagevos & M. Gijsberts, 2006. "Immigration, integration and the labour market; Turkish immigrants in Germany and the Netherlands," CPB Discussion Paper 75, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Euwals, Rob & Dagevos, Jaco & Gijsberts, Mérove & Roodenburg, Hans, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute of Labor Economics (IZA).
    7. Rob Euwals & Hans Roodenburg & J. Dagevos & M. Gijsberts, 2006. "Immigration, integration and the labour market; Turkish immigrants in Germany and the Netherlands," CPB Discussion Paper 75.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.
    9. Vikman, Ulrika, 2013. "Paid parental leave to immigrants: An obstacle to labor market entrance?," Working Paper Series, Center for Labor Studies 2013:4, Uppsala University, Department of Economics.
    10. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    11. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    12. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.
    13. Mari Kangasniemi & Merja Kauhanen, 2012. "Profiles of Estonian immigrants and their participation in the Finnish welfare system," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 12, pages 387-416, Edward Elgar Publishing.
    14. Eduard Suari‐Andreu & Olaf van Vliet, 2023. "Intra‐EU migration, public transfers and assimilation," Economica, London School of Economics and Political Science, vol. 90(360), pages 1229-1264, October.
    15. Taryn Ann Galloway, 2006. "Do Immigrants Integrate Out of Poverty in Norway," Discussion Papers 482, Statistics Norway, Research Department.
    16. Sweetman, A. & van Ours, J.C., 2014. "Immigration : What About the Children and Grandchildren?," Discussion Paper 2014-009, Tilburg University, Center for Economic Research.
    17. Xingang Wang & Sholeh A. Maani, 2021. "Ethnic regional networks and immigrants' earnings: A spatial autoregressive network approach," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 141-168, February.
    18. Christian Dustmann & Joseph-Simon Görlach, 2014. "Selective Outmigration and the Estimation of Immigrants' Earnings Profiles," CESifo Working Paper Series 4617, CESifo.
    19. Kahanec, Martin & Tosun, Mehmet S., 2007. "Political Economy of Immigration in Germany: Attitudes and Citizenship Aspirations," IZA Discussion Papers 3140, Institute of Labor Economics (IZA).
    20. Sónia Cabral & Cláudia Duarte, 2016. "Lost in translation? The relative wages of immigrants in the Portuguese labour market," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 27-47, January.

    More about this item

    Keywords

    welfare assimilation; segmented assimilation; first-generation immigrants; dynamic correlated random effects probit model;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2020036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.