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Immigration and income redistribution: A political economy analysis

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Author Info
Karin Mayr ()

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Abstract

This paper examines the effect of immigration on the extent of income redistribution via majority voting on the income tax. The tax outcome depends on the size of the native majority and the initial amount of redistribution in the economy, which in turn determines the skill composition of immigrants. As a main result, we derive conditions for multiple tax equilibria: if the native majority of either skilled or unskilled is not too strong and immigrants are allowed to vote, both a high-tax and a low-tax outcome is possible. In a referendum, natives will then vote against immigrant voting. At best, natives are indifferent towards immigrant voting. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s11127-006-9107-z
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 131 (2007)
Issue (Month): 1 (April)
Pages: 101-116
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Handle: RePEc:kap:pubcho:v:131:y:2007:i:1:p:101-116

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Web page: http://www.springerlink.com/link.asp?id=100332

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Related research
Keywords: Political economy; Immigration; Income redistribution;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. David E. Wildasin, 1994. "Income Redistribution and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 637-56, August. [Downloadable!] (restricted)
    Other versions:
  2. Jonathan Coppel & Jean-Christophe Dumont & Ignazio Visco, 2001. "Trends in Immigration and Economic Consequences," OECD Economics Department Working Papers 284, OECD, Economics Department. [Downloadable!]
  3. Alexander Kemnitz, 2002. "On the Political Economy of Low Skilled Immigration and the Welfare State," International Tax and Public Finance, Springer, vol. 9(4), pages 423-434, August. [Downloadable!] (restricted)
  4. Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June. [Downloadable!] (restricted)
  5. Lejour, Arjan M & Verbon, Harrie A A, 1994. " Labour Mobility and Decision Making on Social Insurance in an Integrated Market," Public Choice, Springer, vol. 79(1-2), pages 161-85, April.
  6. Mazza, Isidoro & van Winden, Frans, 1996. " A Political Economic Analysis of Labor Migration and Income Redistribution," Public Choice, Springer, vol. 88(3-4), pages 333-63, September.
  7. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  8. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August. [Downloadable!] (restricted)
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  9. Jim Dolmas & Gregory W. Huffman, 2003. "The Political Economy of Immigrationa and Income Redistribution," Working Papers 0312, Department of Economics, Vanderbilt University. [Downloadable!]
  10. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December. [Downloadable!] (restricted)
  11. Marcel Thum, 2004. "Controlling Migration in an Open Labor Market," Public Choice, Springer, vol. 119(3_4), pages 425-443, 06. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bergh, Andreas & Fink, Günther, 2009. "Immigrants’ Attitudes towards Redistribution: Implications for the Welfare State," Ratio Working Papers 138, The Ratio Institute. [Downloadable!]
  2. Sanjit Dhami & Ali al-Nowaihi, 2008. "Social Preferences and Redistribution Under Direct Democracy," Discussion Papers in Economics 08/11, Department of Economics, University of Leicester. [Downloadable!]
  3. Kar, Saibal, 2007. "Migration Taxes and Human Capital Formation: Some Implications for Development," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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