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IZA
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Immigrants in the UK and in West Germany – Relative Income Position, Income Portfolio, and Redistribution Effects
by
Felix Büchel, Joachim R. Frick
(June 2003)
published in: Journal of Population Economics, 2004, 17 (3), 553–581
Abstract:
Based on data from the BHPS and the GSOEP, we analyse the economic performance
of various ethnic groups in the UK and West Germany, as well as the effects of income
redistribution on these populations. Taking the indigenous population of each country
as the reference category, we find that, as a whole, the non-indigenous population in
the UK fares much better than the immigrant population in Germany. However, the
range of economic performance across different ethnic groups in the UK is much larger
than that in Germany. The German corporatist welfare system is characterised by
much stronger redistribution effects than the liberal UK one. Consequently, the
relatively low-performing immigrant population in Germany profits more from the
redistribution system than immigrants with similar socio-economic attributes in the UK.
Text: See Discussion Paper No. 788 
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