A Cross-National Examination of the Welfare State as an Agent of Immigrant Incorporation

Abstract

The fact that destination countries in contemporary migration are predominantly welfare states marks a distinct departure from historical patterns. While the impact of international migration on the welfare state is highly contested in the literature, the other side of the relationship--the ways in which advanced welfare states influence the incorporation of immigrants--has barely been examined. This study tests the applicability of an extension of the Welfare Regime Theory in the incorporation of foreign-born as compared to natives across 24 European nations clustered in 5 different welfare regimes. Specifically, it explores how much of the variability in self-reported economic and social capital indicators of incorporation is attributable to the nature of the welfare state and to specific theoretical traits associated with different welfare regimes. Results indicate that immigrants fare economically better in countries with comprehensive welfare systems of social protection and that country's amount of social spending has a positive influence in the economic incorporation of foreign-labor. The impact of the welfare state on individuals' economic well-being is higher for the native-born population than for their immigrant counterparts. Generous welfare systems are also beneficial for the social capital formation of immigrant communities. Immigrants residing in countries representative of the Scandinavian regime report higher levels of generalized trust, trust in institutions and frequency of informal social contacts than immigrants residing in countries representative of other welfare regimes. The same pattern is observed for the native-born population. Country's spending in social benefits increases the social trust and frequency of socialization of both groups, although the impact is larger for the native-born population. Country's spending in means-tested social benefits decreases social trust while country's spending in non-means-tested benefits increases it. Native-born individuals report higher levels of generalized trust and socialize more often than equivalent immigrants. However, the level of trust in country's institutions is higher for immigrant than for their native peers.