Template-type: ReDIF-Paper 1.0
Author-Name: Yu, Yip-Ching
Author-Email: yu@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Nimeh, Zina
Author-Email: nimeh@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Segmented paths of welfare assimilation
Abstract: This paper investigates the extent to which first-generation immigrants
	 in the Netherlands undergo segmented paths of welfare assimilation and
	 its underlying mechanism. Using unique longitudinal panel administrative
	 data (2007-2015) based on the entire Dutch population from Statistics
	 Netherlands (CBS), we estimate the trajectories of immigrant welfare
	 utilization over the working-age life course, which is employed as an
	 indicator of economic marginalization, vis-à-vis those of two base
	 groups from the native populations representing different economic
	 segments of the host country, namely: average Dutch natives and Dutch
	 natives with low education level. The results show that, while
	 mainstream assimilation is the dominant trend, it is not a common path
	 for all. The risk of persistent marginalization exists and concentrates
	 among first-generation immigrants characterized by structural and human
	 capital disadvantages, despite their aspiration to integrate and notable
	 degrees of upward mobilities. The worst scenario projected is a lack of
	 assimilation to neither segment, suggesting prospective emergence of an
	 ethnic underclass at the bottom of the economic ladder. The main policy
	 implications are twofold. First, automatic closing of the
	 immigrant-native gap over time should not be presumed if a level playing
	 field is not provided for all regardless of their type of immigration
	 and ethnic background. Second, the need for distinction between
	 immigration policy and refugee policy should not be obscured by the
	 consolidation of immigrants as one homogenous group, as systematic
	 discrepancy is being observed between refugees and other types of
	 migrants in both the patterns and mechanisms of welfare assimilation.
Classification-JEL: H53, J6, I38, C23, J15
Keywords: welfare assimilation, segmented assimilation, first-generation immigrants,
	 dynamic correlated random effects probit model
Series: UNU-MERIT Working Papers
Creation-Date: 20200826
Number: 2020-036
File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-036.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2020036