Why Immigrants Manage to Grab More Social Benefits? Empirical Cross-Country Analysis

Abstract

Using data from the Luxembourg Income Study we analyze state welfare generosity to immigrants and natives in Sweden, Norway, Belgium, Germany and the USA. The distinction between EU and non-EU immigrants proves to be an interesting one. We find a substantial social income gap between non-EU immigrants and natives, while EU immigrants are quite similar to natives. The main reasons for the existence of this social income gap are family wage income, number of children and income earners in the family. While these characteristics explain almost fully the gap in the EU countries, they are of little help in others.