An econometric examination of public assistance and social insurance utilization of foreign-born households

This dissertation conducts an econometric analysis of social program participation by foreign-born households relative to otherwise similar native households of the same ancestry. A household-level theoretical model is developed as the basis for the empirical model. A seven equation system is formulated which accounts for interrelationships between welfare participation, social insurance participation, and head and spouse hours worked. The system is estimated for 30 areas of origin using 1990 U.S. Census microdata. The large number of areas examined allows for a more detailed analysis of program participation by the foreign born than has been conducted previously. Age at entry is included in the analysis which is potentially very important, yet has been excluded by nearly all previous researchers.;The foreign born are found to be less likely to participate in welfare programs than otherwise similar natives for 11 areas. There is great variation in the effects of foreign birth on participation across countries of origin. Age at entry is also important, although the direction of its effect is sporadic and its magnitude is small.;Foreign-born households are more likely to participate in social insurance programs than otherwise similar natives. This appears to be caused by the most distant entry cohorts. Entry age is negatively related to social insurance participation, primarily because of eligibility requirements.;Program participation differences between older and working-age foreign born are examined by running the model separately for two age groups for five countries. In general, the older foreign born are more likely than natives to participate in both types of programs. The working-age foreign born are less likely to participate in welfare programs, but are not statistically different from natives with respect to social insurance participation. This type of analysis has not been conducted before, although the results have potentially significant policy implications.;Finally, the other equations in the model produced favorable results, particularly the wage equations. Age at entry is negatively related to wages for nearly all areas examined, although the foreign born are found to be at an earnings advantage relative to natives for several areas.