Intra-EU Migration, Public Transfers, and Assimilation: Evidence for the Netherlands

In this study we investigate public transfer receipt and assimilation of EU migrants in the Netherlands. To do so, we use high quality administrative panel data containing comprehensive information on all public transfers individuals can receive. Results show that, after controlling for composition effects, EU migrants are less likely to receive public transfers compared to Dutch natives and they receive significantly lower amounts conditional on transfer receipt. These differences are particularly large during the �first years after arrival in the Netherlands. Three to five years after arrival, the differences become indistinguishable from zero, indicating that EU migrants gradually assimilate into public transfer receipt. The size and the sign of the differences depend on whether we consider contributory or non-contributory transfers. Further exploration by means of an Oaxaca-Blinder decomposition shows that the composition effects are mostly due to differences in age and variables related to family structure.