Scandinavian Working Papers in Economics

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

No 06-6: Welfare Dependency among Danish Immigrants.

Kræn Blume () and Mette Verner ()
Additional contact information
Kræn Blume: AKF, Postal: Institute of Local Government Studies, Denmark
Mette Verner: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

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

JEL-codes: C23; C33; D31; I21

50 pages, September 27, 2006

Note: Forthcoming in European Journal of Political Economy

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06-6_kbjmv.pdf PDF-file 

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