A Comparative Study of Net Transfers for Different Immigrant Groups : Evidence from Germany

In the wake of immigration to Western welfare states, certain aspects, such as the financial cost of providing social welfare, have become a subject of debate. The net amount of costs and tax payments, sometimes referred to as net transfers, has been used as a measure for evaluating the sustainability of welfare state systems. The present study analyses determinants of the volume of net transfers in Germany in 2002 with reference to immigrants from Poland, Turkey, former Yugoslavia, Lebanon and Iran. The study focuses on the differences and similarities between their outcomes. In line with previous research, the results below suggest that employment situation and family composition explain a large part of the differences in net transfers. One outcome that has not previously been adequately addressed, however, is that the legal immigration status granted on arrival in Germany is of considerable importance.