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

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.

Migration and Welfare Systems – State of the Art and Research Challenges

“…Similarly, Hansen and Lofstrom (2009) point to the large proportion of refugees in Swedish immigrant population as a reason for a higher dependency. In the case of Germany, Riphahn et al (2010) conclude that higher dependency is not tied to the immigrant status, but the differences in socio-demographic differences between immigrants and natives. Similar results were obtained for United States (Garvey et al 2002).…”

Citizenship, Fertility, and Parental Investments

“…For instance, citizenship status does not affect the eligibility criteria for insurance-based unemployment benefits and unemployment assistance. Eligibility for social assistance is also independent of citizenship (Riphahn, Sander, and Wunder 2013). Similarly, there are no differences between citizens and noncitizens in the rules that regulate access to healthcare, kindergartens, and child daycare centers (Federal Office for Migration and Refugees in Germany).…”

Welfare Dependency Among Immigrants to Norway: A Panel Data Study of Transfer Shares

“…Earlier studies of welfare dependency in western countries comprise among others [1][2][3][4][5][6]. These studies consider different types of immigrants, and host country also differs.…”

“…Ref. [1] compares how Turkish immigrants or individuals of Turkish descent and natives in Germany perform with respect to welfare dependency. After controlling for compositional heterogeneity, they find that the difference in welfare receipt is statistically significant only for second generation immigrants.…”