Immigrants and the Use of Government Transfer Payments

This article examines the use of government benefits and allowances by Australian immigrants relative to their native‐born counterparts. The study extends the Australian literature by employing micro‐level (Australian Longitudinal Survey) data, controlling for a number of relevant variables including first or second generation immigrant status and the nature of transfer payments received. The data on young adults employed in the study provide a comparable population for examining the relative use of benefits among those of similar age, allowing comparisons based on only the relevant types of benefits. The results consistently reject the hypothesis that immigrants are disproportionately using benefit payments and thereby imposing a burden on public funds. These results are of interest, especially since Australia is already a major immigrant‐receiving country, and since the Australian welfare system is more extensive in its coverage than most other immigrant‐receiving countries.