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Migration and the welfare state: The economic power of the non-voter?

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  • Kira Boerner

    ()

  • Silke Uebelmesser

    ()

Abstract

This paper investigates the impact of emigration on the political choice of the size of the welfare state. Mobility has two countervailing effects: the political participation effect and the tax base effect. With emigration, the composition of the constituency changes. This increases the political influence of the less mobile part of the population. But the new political majority then also has to take into account that emigration reduces tax revenues and thereby affects the feasible set of redistribution policies. We find that the direction of the total effect of migration depends on the initial income distribution in the economy. Our results also contribute to the empirical debate on the validity of the median-voter approach in cross-country studies for explaining the relation between income inequality and redistribution levels. Copyright Springer Science + Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s10797-006-0512-5
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Bibliographic Info

Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 14 (2007)
Issue (Month): 1 (February)
Pages: 93-111

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Handle: RePEc:kap:itaxpf:v:14:y:2007:i:1:p:93-111

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Web page: http://www.springerlink.com/link.asp?id=102915

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Keywords: Migration; Redistribution; Voting;

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References

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Cited by:
  1. Giuranno, Michele G. & Rongili, Biswas, 2012. "Inter-jurisdictional migration and the size of government," MPRA Paper 42604, University Library of Munich, Germany.
  2. Kai Konrad & Stergios Skaperdas, 2012. "The market for protection and the origin of the state," Economic Theory, Springer, vol. 50(2), pages 417-443, June.
  3. Kathleen M. Day & Stanley L. Winer, 2005. "Policy-induced Internal Migration: An Empirical Investigation of the Canadian Case," CESifo Working Paper Series 1605, CESifo Group Munich.
  4. Alexander Haupt & Silke Uebelmesser, 2009. "Voting on Labour-Market Integration and Education Policy when Citizens Differ in Mobility and Ability," CESifo Working Paper Series 2588, CESifo Group Munich.
  5. Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153, CPB Netherlands Bureau for Economic Policy Analysis.

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