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Does immigration weaken natives' support for the welfare state? Evidence from Germany

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  • Stichnoth, Holger

Abstract

Using data from the 1997 and 2002 waves of the German Socio-Economic Panel and from official statistics, I study whether natives are less supportive of state help for the unemployed in regions where the share of foreigners among the unemployed is high. Unlike previous studies, I use individual-level panel data, which allows a more convincing identification of a causal effect. I find that the negative bivariate association is mainly driven by observed individual differences such as East German origin or income. While there remains some evidence of a negative association even after adjusting for individual differences (including time-invariant unobserved differences), the association is weak compared to the association with other variables such as income, self-employment, or East German origin.

Suggested Citation

  • Stichnoth, Holger, 2010. "Does immigration weaken natives' support for the welfare state? Evidence from Germany," ZEW Discussion Papers 10-008, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:10008
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    References listed on IDEAS

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    Cited by:

    1. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
    2. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Leibniz Centre for European Economic Research.
    3. Siedler, Thomas & Sonnenberg, Bettina, 2012. "Intergenerational Earnings Mobility and Preferences for Redistribution," IZA Discussion Papers 6981, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    redistribution; social security; welfare state; immigration; ethnic diversity; Germany; cluster-robust standard errors; two-way clustering;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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