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The welfare use of immigrants and natives in Germany: the case of Turkish immigrants

Author

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  • Regina T. Riphahn
  • Monika Sander
  • Christoph Wunder

Abstract

Purpose - This paper aims to analyze the welfare use of Turkish immigrants and natives in Germany. The authors ask whether the immigrant‐native gap in welfare use can be explained by observable characteristics, whether the mechanisms behind welfare dependence differ for Turkish immigrants and natives, and, finally, they compare the situation before and after the 2005 reform of the German welfare system. Design/methodology/approach - Using data from the German Socio‐Economic Panel Study, the authors estimate linear probability models with random effects to investigate the correlates of transfer receipt for Turkish immigrants and natives. Findings - Turkish immigrants have a higher propensity to use welfare benefits than natives. After controlling for general individual and household level characteristics, the difference in welfare receipt is statistically significant only for the group of second generation immigrants. The correlation of observable characteristics with welfare dependence differs significantly for the native and immigrant sample. The share of benefit recipients increased after the policy reform in 2005 for both immigrants and natives. Practical implications - First, as human capital and particularly labor market status are important determinants of welfare use, training programs designed for the special needs of immigrants might support their labor market integration. Second, measures to ameliorate the integration of older people into the labor market might be particularly useful because the need for welfare benefits arises particularly at the 50‐60 age range. Originality/value - This is the first study to investigate welfare use of Turkish immigrants after the German 2005 labor market policy reform.

Suggested Citation

  • 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.
    • Handle: RePEc:eme:ijmpps:v:34:y:2013:i:1:p:70-82
    DOI: 10.1108/01437721311319665
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    Citations

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    Cited by:

    1. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    2. Gonnot, Jérôme, 2020. "The Evolution of First-Generation Immigrants' Political Preferences in Western Europe," TSE Working Papers 20-1145, Toulouse School of Economics (TSE).
    3. Corrado Giulietti & Jackline Wahba, 2013. "Welfare migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 26, pages 489-504, Edward Elgar Publishing.
    4. Paul Berbée & Jan Stuhler, 2023. "The Integration of Migrants in the German Labor Market: Evidence over 50 Years," RF Berlin - CReAM Discussion Paper Series 2315, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Kamila Cygan-Rehm & Regina T. Riphahn, 2014. "Teenage pregnancies and births in Germany: patterns and developments," Applied Economics, Taylor & Francis Journals, vol. 46(28), pages 3503-3522, October.
    6. 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.
    7. 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).
    8. Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2017. "Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany," Demography, Springer;Population Association of America (PAA), vol. 54(1), pages 231-257, February.
    9. Sebastian Königs, 2013. "The Dynamics of Social Assistance Benefit Receipt in Germany: State Dependence Before and After the Hartz Reforms," OECD Social, Employment and Migration Working Papers 136, OECD Publishing.
    10. K. Burggraeve & C. Piton, 2016. "The economic consequences of the flow of refugees into Belgium," Economic Review, National Bank of Belgium, issue i, pages 43-61, June.
    11. Jérôme Gonnot & Federica lo Polito, 2023. "Cultural Transmission and Political Attitudes: Explaining Differences between Natives and Immigrants in Western Europe," Working Papers 2023-12, CEPII research center.
    12. Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2016. "Do Immigrants Suffer More from Job Loss? Unemployment and Subjective Well-Being in Germany," SOEPpapers on Multidisciplinary Panel Data Research 842, DIW Berlin, The German Socio-Economic Panel (SOEP).

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