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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 06-6:
Welfare Dependency among Danish Immigrants.

Kræn Blume () and Mette Verner ()

Abstract: In this paper, we investigate determinants of the welfare dependency among immigrants in an assimilation framework. The duration of stay is a major determinant of welfare dependency. Also, assimilation patterns vary substantially across immigrants from developed and less devel-oped countries, respectively. The late arriving immigrants are relatively more dependent on transfers, explaining part of the general increase in welfare dependency during the latest years. This is partly attributed to the large variation in qualifications across cohorts of immigrants. Fur-thermore, the business cycle effects of immigrants appear to be considerably larger than for na-tives.

Keywords: Welfare dependency; transfers; immigrants; assimilation; two-limit tobit; (follow links to similar papers)

JEL-Codes: C23; C33; D31; I21; (follow links to similar papers)

50 pages, September 27, 2006

Forthcoming in European Journal of Political Economy

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