Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78631
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 2005:8
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
Abstract: 
We examine peer effects in welfare use among immigrants to Sweden by exploiting a governmental refugee placement policy. We distinguish between the quantity of contacts – the number of individuals of the same ethnicity – and the quality of contacts – welfare use among members of the ethnic group. OLS regressions suggest that both these factors are positively related to individual welfare use. Instrumental variables estimations yield the conclusion that only the quality of contacts matter. An increase of the fraction of the ethnic group on welfare by 10 percent raises the individual probability of welfare use by almost 7 percent.
Subjects: 
Ethnic enclaves
welfare use
immigrants
JEL: 
I38
J15
J18
Document Type: 
Working Paper

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