Does immigration weaken natives support for the welfare state? : evidence from Germany


Stichnoth, Holger


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URL: http://ub-madoc.bib.uni-mannheim.de/2879
URN: urn:nbn:de:bsz:180-madoc-28796
Document Type: Working paper
Year of publication: 2010
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 300 Social sciences, sociology, anthropology
Classification: JEL: J61 J15 I38 H55 H53 ,
Subject headings (SWD): Deutschland , Einwanderung , Sozialstaat , Meinung , Bevölkerung , Schätzung
Keywords (English): redistribution , social security , welfare state , immigration , ethnic diversity , Germany , cluster-robust standard errors , two-way clustering
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.
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