Does migration threaten the sustainability of European welfare states?
AbstractWe investigate the relative contributions of migrant and native households to welfare states. Using two step Oaxaca-Blinder decompositions that control for selection into bene t take-up, we are able to identify the individual variables contributing to di erences in welfare receipt by native and migrant households. We nd that most of the di erences are explained by observable characteristics such as size of the household as well as age and education of its head and income in some countries. In contrast, signi cantly lower net contributions of migrant households to the state budget persist in many countries even after controlling for observable factors. The reasons for this are primarily lower tax payments of migrant households. Selective migration and sound integration policies and as well as policies avoiding marginalization of migrants in informal labor markets are therefore the most e ective means to avoid scal burdens of migration.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by WWWforEurope in its series WWWforEurope Working Papers series with number 21.
Date of creation: Jul 2013
Date of revision:
Publication status: published
Contact details of provider:
Postal: WWWforEurope Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna
Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-IUE-2013-07-15 (Informal & Underground Economics)
- NEP-MIG-2013-07-15 (Economics of Human Migration)
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.:
- Thomas Bauer & Mathias Sinning, 2006.
"An Extension of the Blinder-Oaxaca Decomposition to Non-Linear Models,"
RWI Discussion Papers
0049, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer, vol. 92(2), pages 197-206, May.
- Blume, Kraen & Verner, Mette, 2007.
"Welfare dependency among Danish immigrants,"
European Journal of Political Economy,
Elsevier, vol. 23(2), pages 453-471, June.
- Pellizzari, Michele, 2011.
"The Use of Welfare by Migrants in Italy,"
IZA Discussion Papers
5613, Institute for the Study of Labor (IZA).
- Borjas, George J & Hilton, Lynette, 1996.
"Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(2), pages 575-604, May.
- George J. Borjas & Lynette Hilton, 1995. "Immigration and the Welfare State: Immigrant Participation in Means- Tested Entitlement Programs," NBER Working Papers 5372, National Bureau of Economic Research, Inc.
- Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 1999.
"Network Effects and Welfare Cultures,"
9903, Harris School of Public Policy Studies, University of Chicago.
- Sendhil Mullainathan & Marianne Bertrand & Erzo F.P. Luttmer, 1998. "Network Effects and Welfare Cultures," Working papers 98-21, Massachusetts Institute of Technology (MIT), Department of Economics.
- Marianne Bertrand & Erzo F.P. Luttmer & Sendhil Mullainathan, 1999. "Network Effects and Welfare Cultures," JCPR Working Papers 62, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Bertrand, M. & Luttmer, E.F.P. & Mullainathan, S., 1998. "Network Effects and Welfare Cultures," Papers 201, Princeton, Woodrow Wilson School - Public and International Affairs.
- Marianne Bertrand & Erzo F.P. Luttmer & Sendhil Mullainathan, 1998. "Network Effects and Welfare Cultures," NBER Working Papers 6832, National Bureau of Economic Research, Inc.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Boeri, Tito, 2009.
"Immigration to the Land of Redistribution,"
IZA Discussion Papers
4273, Institute for the Study of Labor (IZA).
- Tito Boeri, 2009. "Immigration to the Land of Redistribution," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 5, London School of Economics / European Institute.
- Tito Boeri, 2009. "Immigration to the land of redistribution," LSE Research Online Documents on Economics 53364, London School of Economics and Political Science, LSE Library.
- Tito Boeri, 2010. "Immigration to the Land of Redistribution," LEQS â LSE 'Europe in Question' Discussion Paper Series 05, European Institute, LSE.
- Karin Mayr, 2004. "The fiscal impact of immigrants in Austria--a generational accounting analysis," Economics working papers 2004-09, Department of Economics, Johannes Kepler University Linz, Austria.
- Ben Jann, 2005. "Standard Errors for the Blinder-Oaxaca Decomposition," German Stata Users' Group Meetings 2005 03, Stata Users Group.
- Christian Dustmann & Tommaso Frattini & Caroline Halls, 2010.
"Assessing the Fiscal Costs and Benefits of A8 Migration to the UK,"
Institute for Fiscal Studies, vol. 31(1), pages 1-41, 03.
- Christian Dustmann & Tommaso Frattini & Caroline Halls, 2009. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," CReAM Discussion Paper Series 0918, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Daniel A. Powers & Hirotoshi Yoshioka & Myeong-Su Yun, 2011. "mvdcmp: Multivariate decomposition for nonlinear response models," Stata Journal, StataCorp LP, vol. 11(4), pages 556-576, December.
- Barrett, Alan & McCarthy, Yvonne, 2008.
"Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy,"
IZA Discussion Papers
3494, Institute for the Study of Labor (IZA).
- Alan Barrett & Yvonne McCarthy, 2008. "Immigrants and welfare programmes: exploring the interactions between immigrant characteristics, immigrant welfare dependence, and welfare policy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 543-560, Autumn.
- Alan Barrett & Yvonne McCarthy, 2008. "Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy," Papers WP238, Economic and Social Research Institute (ESRI).
- Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
- Wadensjo, Eskil, 2007. "Immigration and net transfers within the public sector in Denmark," European Journal of Political Economy, Elsevier, vol. 23(2), pages 472-485, June.
- Storesletten, Kjetil, 2001.
"Fiscal Implications of Immigration - A Net Present Value Calculation -,"
701, Stockholm University, Institute for International Economic Studies.
- Kjetil Storesletten, 2003. "Fiscal Implications of Immigration-A Net Present Value Calculation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 487-506, 09.
- Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving towards a new growth model," WWWforEurope Deliverables series 3, WWWforEurope.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.