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Welfare‐state retrenchment, transnational migration and the integration of immigrants have been accompanied by a growing ethnicization and racialization of welfare‐state politics in the United States and Germany. Although ethnicization and racialization may have other, deeper causes, immigration and its effects on social policies and provisions has become one of the main targets of dissent in the politics of West European and North American welfare states. While in the United States these developments have reinforced race‐class cleavages that have existed since the emergence of her welfare state, German welfare‐state politics has evolved from being primarily class‐based to class‐ethnicity divides in recent years. These cleavages have disadvan‐taged social democratic positions that tried to bridge protection of native workers and humanitarian obligations towards refugees but have supported nationalist‐populist trends. Cosmopolitan‐liberal positions face the formidable task of developing institutional mechanisms for handling conflicts in ethnically pluralist'welfare states.
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