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International migration and the welfare state revisited

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  • Gaston, Noel
  • Rajaguru, Gulasekaran

Abstract

Immigration is a controversial topic in most developed economies. The presence of a redistributive welfare state in all major immigrant host countries creates a margin on which immigration affects native welfare. The primary focus of the paper is whether a large intake of immigrants reduces welfare state effort. It is usually argued that steady increases in immigration lead to public pressure for lower levels of publicly-funded social expenditures. In contrastz to the earlier empirical literature on this topic, we find little evidence in favour of this hypothesis. While immigration does have a relatively modest effect on the welfare state, if anything there is some support for the view that a greater influx of immigrants has lead policy-makers to increase welfare state spending.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 29 (2013)
Issue (Month): C ()
Pages: 90-101

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Handle: RePEc:eee:poleco:v:29:y:2013:i:c:p:90-101

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Web page: http://www.elsevier.com/locate/inca/505544

Related research

Keywords: International immigration; Welfare state expenditures; Dynamic panel estimates;

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Cited by:
  1. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Munich Reprints in Economics, University of Munich, Department of Economics 19288, University of Munich, Department of Economics.
  2. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS) p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  3. Tim Krieger, 2014. "Public Pensions and Immigration," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 10-15, 07.
  4. Skupnik, Christoph, 2013. ""Welfare magnetism" in the EU-15? Why the EU enlargement did not start a race to the bottom of welfare states," Discussion Papers 2013/8, Free University Berlin, School of Business & Economics.
  5. Libman, Alexander & Herrmann-Pillath, Carsten & Yadav, Gaurav, 2013. "Are human rights and economic well-being substitutes? The evidence from migration patterns across the Indian states," European Journal of Political Economy, Elsevier, Elsevier, vol. 31(C), pages 139-164.

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