The lore of the immigrant who comes to the United States to take advantage of our welfare system has a long history in America's collective mythology, but it has little basis in fact. The so-called problem of immigrants on the dole was nonetheless a major concern of the 1996 welfare reform law, the impact of which is still playing out today. While legal immigrants continue to pay taxes and are eligible for the draft, welfare reform has severely limited their access to government supports in times of crisis. Edited by Michael Fix, Immigrants and Welfare rigorously assesses the welfare reform law, questions whether its immigrant provisions were ever really necessary, and examines its impact on legal immigrants' ability to integrate into American society. Immigrants and Welfare draws on fields from demography and law to developmental psychology. The first part of the volume probes the politics behind the welfare reform law, its legal underpinnings, and what it may mean for integration policy. Contributor Ron Haskins makes a case for welfare reform's ultimate success but cautions that excluding noncitizen children (future workers) from benefits today will inevitably have serious repercussions for the American economy down the road. Michael Wishnie describes the implications of the law for equal protection of immigrants under the U.S. Constitution. The second part of the book focuses on empirical research regarding immigrants' propensity to use benefits before the law passed, and immigrants' use and hardship levels afterwards. Jennifer Van Hook and Frank Bean analyze immigrants' benefit use before the law was passed in order to address the contested sociological theories that immigrants are inclined to welfare use and that it slows their assimilation. Randy Capps, Michael Fix, and Everett Henderson track trends before and after welfare reform in legal immigrants' use of the major federal benefit programs affected by the law. Leighton Ku looks specifically at trends in food stamps and Medicaid use among noncitizen children and adults and documents the declining health insurance coverage of noncitizen parents and children. Finally, Ariel Kalil and Danielle Crosby use longitudinal data from Chicago to examine the health of children in immigrant families that left welfare. Even though few states took the federal government's invitation with the 1996 welfare reform law to completely freeze legal immigrants out of the social safety net, many of the law's most far-reaching provisions remain in place and have significant implications for immigrants. Immigrants and Welfare takes a balanced look at the politics and history of immigrant access to safety-net supports and the ongoing impacts of welfare. Copublished with the Migration Policy Institute

Governments and development agencies spend considerable resources building property and company registries to protect property rights. When these efforts succeed, owners feel secure enough to invest in their property and banks are able use it as collateral for credit. Similarly, firms prosper when entrepreneurs can transform their firms into legal entities and thus contract more safely. Unfortunately, developing registries is harder than it may seem to observers, especially in developed countries, where registries are often taken for granted. As a result, policies in this area usually disappoint.  

Benito Arruñada aims to avoid such failures by deepening our understanding of both the value of registries and the organizational requirements for constructing them. Presenting a theory of how registries strengthen property rights and reduce transaction costs, he analyzes the major trade-offs and proposes principles for successfully building registries in countries at different stages of development. Arruñada focuses on land and company registries, explaining the difficulties they face, including current challenges like the subprime mortgage crisis in the United States and the dubious efforts made in developing countries toward universal land titling. Broadening the account, he extends his analytical framework to other registries, including intellectual property and organized exchanges of financial derivatives. With its nuanced presentation of the theoretical and practical implications, Institutional Foundations of Impersonal Exchange significantly expands our understanding of how public registries facilitate economic growth.

One in four American adults doesn’t have a bank account. Low-income families lack access to many of the basic financial services middle-class families take for granted and are particularly susceptible to financial emergencies, unemployment, loss of a home, and uninsured medical problems. Insufficient Funds explores how institutional constraints and individual decisions combine to produce this striking disparity and recommends policies to help alleviate the problem. Mainstream financial services are both less available and more expensive for low-income households. High fees, minimum-balance policies, and the relative scarcity of banks in poor neighborhoods are key factors. Michael Barr reports the results of an in-depth study of financial behavior in 1,000 low- and moderate-income families in metropolitan Detroit. He finds that most poor households have bank accounts, but combine use of mainstream services with alternative options such as money orders, pawnshops, and payday lenders. Barr suggests that a tax credit for banks serving primarily disadvantaged customers could facilitate greater equality in the private financial sector. Drawing on evidence from behavioral economics, Sendhil Mullainathan and Eldar Shafir show that low-income individuals exhibit many of the same patterns and weaknesses in financial decision making as middle-class individuals and could benefit from many of the same financial aids. They argue that savings programs that automatically enroll participants and require them to actively opt out in order to leave the program could drastically increase savings ability. Ronald Mann demonstrates that significant changes in the credit market over the past fifteen years have allowed companies to expand credit to a larger share of low-income families. Mann calls for regulations on credit card companies that would require greater disclosure of actual interest rates and fees. Raphael Bostic and Kwan Lee find that while home ownership has risen dramatically over the past twenty years, elevated risks for low-income families—such as foreclosure—may well outweigh the benefits of owning a home. The authors ultimately argue that if we want to demand financial responsibility from low-income households, we have an obligation to assure that these families have access to the banking, credit, and savings institutions that are readily available to higher-income families. Insufficient Funds highlights where and how access is blocked and shows how government policy and individual decisions could combine to eliminate many of these barriers in the future.

According to the American dream, hard work and a good education can lift people from poverty to success in the "land of opportunity." The unskilled immigrants who came to the United States from southern, central, and eastern Europe in the late 19th and early 20th centuries largely realized that vision. Within a few generations, their descendants rose to the middle class and beyond. But can today's unskilled immigrant arrivals—especially Mexicans, the nation's most numerous immigrant group—expect to achieve the same for their descendants? Social scientists disagree on this question, basing their arguments primarily on how well contemporary arrivals are faring. In Italians Then, Mexicans Now, Joel Perlmann uses the latest immigration data as well as 100 years of historical census data to compare the progress of unskilled immigrants and their American-born children both then and now. The crucial difference between the immigrant experience a hundred years ago and today is that relatively well-paid jobs were plentiful for workers with little education a hundred years ago, while today's immigrants arrive in an increasingly unequal America. Perlmann finds that while this change over time is real, its impact has not been as strong as many scholars have argued. In particular, these changes have not been great enough to force today's Mexican second generation into an inner-city "underclass." Perlmann emphasizes that high school dropout rates among second-generation Mexicans are alarmingly high, and are likely to have a strong impact on the group's well-being. Yet despite their high dropout rates, Mexican Americans earn at least as much as African Americans, and they fare better on social measures such as unwed childbearing and incarceration, which often lead to economic hardship. Perlmann concludes that inter-generational progress, though likely to be slower than it was for the European immigrants a century ago, is a reality, and could be enhanced if policy interventions are taken to boost high school graduation rates for Mexican children. Rich with historical data, Italians Then, Mexicans Now persuasively argues that today's Mexican immigrants are making slow but steady socio-economic progress and may one day reach parity with earlier immigrant groups who moved up into the heart of the American middle class. Copublished with the Levy Economics Institute of Bard College