Welfare state type, labour markets and refugees: a comparison of Jews from the former Soviet Union in the United States and the Federal Republic of Germany

Abstract

The massive exodus of Jews from the former Soviet Union [FSU] has been accompanied by welfare state retrenchment and labour market restructuration in the two preferred destination countries of refugee resettlement: the United States and Germany. This study compares the resettlement policies and outcomes of FSU Jews and shows how the context of resettlement, viz. differences in welfare state type, labour market formation and host ethnic community, yield marked differences in formal job market adaptation. FSU Jews in Germany are almost twice as likely as their American counterparts to rely on some form of refugee cash assistance for their primary means of support, whereas the American cohort is twice as likely to be employed in the formal labour market. However, informal labour market adaptation is quite similar. Findings suggest unwitting system convergence, each exercising a different form of social exclusion - welfare stigma and under employment for refugees in the United States, and high labour market regulation in Germany.