Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Welfare Dependency among Danish Immigrants.
() 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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