Immigration and the Evolving American Welfare State: Examining Policies in the U.S. States

Abstract

The inclusion of racial/ethnic minorities is often considered an important factor leading to a relatively limited American welfare system. However, given the federal nature of welfare eligibility rules and the states' role in determining benefit levels, few studies explicitly link questions of inclusion and benefit levels when explaining the evolution of American welfare policy. This study examines the relationship between inclusion and benefit levels by analyzing state policies related to the welfare reforms of 1996 which allowed states to decide if recent immigrants would be included in welfare benefits, and subsequently the extent to which this decision affected overall benefit levels offered by states under TANF. The results suggest that states' decisions regarding inclusion subsequently affect benefit levels, with the direction of these relationships most closely reflecting the erosion model's prediction of broader eligibility associated with lower benefit levels.

Immigration Attitudes and Support for the Welfare State in the American Mass Public

“…Scholars have long associated high racial heterogeneity with low support for social welfare in a society (Banting and Kymlicka 2005;Gilens 2003;Habyarimana et al 2007;Hero and Preuhs 2007;Miguel 1999;Miguel and Gugerty 2005;Soss et al 2001;Wolfe and Klausen 1997). One consequence of increasing immigration rates over the past several decades is increasing racial, ethnic, or nationality heterogeneity, particularly as immigrant populations disperse beyond the typical gateway states.…”

“…The bulk of the research in the American states clearly links increasing racial heterogeneity (i.e., increasing black populations) with declining support for welfare programs (Banting and Kymlicka 2005;Gilens 2003;Habyarimana et al 2007;Hero and Preuhs 2007;Miguel 1999;Miguel and Gugerty 2005;Soss et al 2001;Wolfe and Klausen 1997). Using the American experience with race and welfare as a foundation, comparative scholars have begun to examine whether or not the increasing immigrant populations experienced by Europe during the 1990s and 2000s might lead to an erosion of support for welfare programs (Burgoon, Koster, and van Egmond 2010;Eger 2010;Hjerm and Schnabel 2012;Larsen 2011;Mau and Burkhardt 2009;Sumino 2013).…”

Attitudes toward Highly Skilled and Low-skilled Immigration: Evidence from a Survey Experiment

“…Hero and Preuhs (2007) examine data on welfare spending for all U.S. states in 1998 and find that states with larger noncitizen populations tend to provide smaller cash benefits in their welfare programs, and this effect is larger the more accessible the welfare programs are to immigrants. In the right panel of Figure 1 we plot changes in state public welfare expenditures per capita against changes in the immigrant population.…”

Compensation or Retrenchment? The Paradox of Immigration and Public Welfare Spending in the American States

“…Race and ethnicity theory is perhaps the most recognized framework for understanding how immigration influences the welfare state, according to which immigration increases diversity, erodes social solidarity and as a result should reduce public welfare spending (Borjas & Trejo, 1990;Hero & Preuhs, 2007;Nannestad, 2007;Agrawal, 2008;Hainmuller & Hiscox, 2010). In addition to the race/ethnicity theory, globalization compensation theory could also shed light on the discussion of immigration and welfare, which suggests that immigration could result in economic risks and increase the incentives for governments to spend more on welfare compensation.…”

“…So far, much of what we know about immigration and the American welfare state is limited by discussions surrounding race and ethnicity (for an example see Hero & Preuhs, 2007). Numerous previous studies have shown that higher proportions of racial minorities such as African Americans are associated with less generous welfare provisions at the state and community levels; an important reason is that white Americans' perception of blacks being overrepresented in the welfare system lowers their support for welfare (Quadagno, 1994;Gilens, 1996Gilens, , 1999Alesina & Glaeser, 2004).…”