Ethnic enclaves and welfare cultures : quasi-experimental evidence

We examine peer effects in welfare use among immigrants to Sweden by exploiting a governmental refugee placement policy. We distinguish between the quantity of contacts? the number of individuals of the same ethnicity?and the quality of contacts – welfare use among members of the ethnic group. OLS regressions suggest that both these factors are positively related to individual welfare use. Instrumental variables estimations yield the conclusion that only the quality of contacts matter. An increase of the fraction of the ethnic group on welfare by 10 percent raises the individual probability of welfare use by almost 7 percent.

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Year of publication:	2005
Authors:	Åslund, Olof ; Fredriksson, Peter
Publisher:	Munich : Center for Economic Studies and Ifo Institute (CESifo)
Subject:	Migranten \| Ethnische Gruppe \| Segregation \| Sozialhilfeempfänger \| Sozialethik \| Schätzung \| Schweden \| immigrants \| welfare use \| ethnic concentration \| welfare cultures

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Series:	CESifo Working Paper ; 1430
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	484932721 [GVK] hdl:10419/18794 [Handle]
Classification:	J15 - Economics of Minorities and Races ; I38 - Government Policy; Provision and Effects of Welfare Programs
Source:	EconStor