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Double standard policy

Why are immigrants still at the tail of welfare

Bibliographic Data

ID21515724
AuthorsOxana Krutova (0000-0003-0846-9850, Finnish Institute of Occupational Health, corresponding author)
Year2023
Volume50
Issue5
Pages690-708
Publication date2023-04-28
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueInternational Journal of Social Economics (JOURNAL)
Journal identifiersISSN: 0306-8293 • E-ISSN: 1758-6712
PublisherEmerald (PUBLISHER)
DOI10.1108/ijse-11-2019-0668
OpenAlexW4312070423
LanguageEN
References cited30

Purpose This research considers the question of whether unemployment insurance benefit and labour-market activation measures induce the likelihood of re-employment and whether this effect differs for natives and immigrants. Design/methodology/approach Statistical processing was carried out on the European Union Statistics on Income and Living Conditions cross-sectional data for Finland for the period 2004 to 2016. Propensity score matching analysis was undertaken to investigate whether a treatment effect (unemployment insurance benefit) was a predictor of success in increasing re-employment rates, when controlling for participation in labour-market policy measures, subsidized employment and personal background characteristics. Findings We find that the probability of re-employment for recipients of unemployment benefits is half that of non-recipients of benefits. Due to the influence of subsidized employment, subsequent employment income decreases for recipients of unemployment benefits and especially for immigrants. Finally, we find that due to the influence of subsidized employment, time spent as a full-time employee decreases for recipients of unemployment benefits and especially for immigrants. Originality/value Although our results indicate that benefit determination has a marked impact on re-employment probabilities, unobserved variables turn to play a significant role in selection of labour-market activation measures. In this respect, we find the treatment assignment to activation policy measures depends on influence of unobserved variables and this effect is more important for the re-employment rates of natives than it is for immigrants. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2019-0668

Demographic economics · Economic growth · Economics · European union · Immigration · Income Support · Labour economics · Political science · Propensity score matching · Subsidy · Unemployment · Welfare · Employment and Welfare Studies · Labor market dynamics and wage inequality · Migration and Labor Dynamics

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