Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence

Ireland's exceptional economic growth in recent years has led to an influx of immigrants. Given the favourable economic climate into which these immigrants are arriving, it is interesting to ask how their earnings and welfare dependence compare with the native population. Using data from a nationally representative sample drawn in 2004 immigrants are found to earn 18 per cent less than natives, controlling for education and years of work experience. However, this single figure hides differences across immigrants from English‐speaking and non‐English‐speaking countries. On average, immigrants are half as likely to have been in receipt of social welfare payments in the previous 12 months relative to natives.