Unemployment Benefits and Immigration: Evidence from the EU
AbstractThe paper studies the impact of unemployment benefits on immigration. A sample of 19 European countries observed over the period 1993 to 2008 is used to test the hypothesis that unemployment benefit spending (UBS) is correlated with immigration flows from EU and non-EU origins. While OLS estimates reveal the existence of a moderate correlation for non-EU immigrants only, IV and GMM techniques used to address endogeneity issues yield, respectively, a much smaller and an essentially zero causal impact of UBS on immigration. All estimates for immigrants from EU origins indicate that flows within the EU are not related to unemployment benefit generosity. This suggests that the so-called 'welfare migration' debate is misguided and not based on empirical evidence.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8672.
Date of creation: Nov 2011
Date of revision:
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Other versions of this item:
- Corrado Giulietti & Martin Guzi & Martin Kahanec & Klaus F. Zimmermann, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 24-38, January.
- Giulietti, Corrado & Guzi, Martin & Kahanec, Martin & Zimmermann, Klaus F., 2011. "Unemployment Benefits and Immigration: Evidence from the EU," IZA Discussion Papers 6075, Institute for the Study of Labor (IZA).
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-LAB-2011-12-13 (Labour Economics)
- NEP-LTV-2011-12-13 (Unemployment, Inequality & Poverty)
- NEP-MIG-2011-12-13 (Economics of Human Migration)
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