Generous to all or ‘insiders only’? The relationship between welfare state generosity and immigrant welfare rights

Abstract:

Two sharply contrasting accounts exist for the relationships between welfare generosity and immigrant social rights. The dualization hypothesis argues that due to fiscal pressures and welfare chauvinism, generous welfare states are more likely to exclude immigrants from access to welfare benefits.
The generosity hypothesis argues that on the contrary, in generous welfare states, an immigrant will be granted greater access to benefits for material, institutional and cultural reasons.

Using newly collected data from the Immigration Policies in Comparison (IMPIC) project that covers 18 Organisation for Economic Co-operation and Development (OECD) states over 30 years (1980–2010) the two hypotheses are tested using pooled time series analyses. Both a composite index of welfare generosity and social welfare expenditures are used as explanatory variables.

Furthermore, the analyses include a number of controls from the welfare state literature, as well as a measure for overall immigration policy restrictiveness. The results broadly support the generosity hypothesis. By contrast, the analyses yield no support for the dualization hypothesis. The index of welfare generosity is positively and significantly associated with immigrant access to benefits, while social welfare expenditures are positively signed but not significant.

A number of sensitivity analyses confirm the robustness of the results. Ultimately, this study demonstrates that generous welfare states are more likely to grant immigrants access to welfare benefits, and less generous welfare states are more likely to exclude immigrants from access.