Welfare spending and ethnic heterogeneity: evidence from a massive immigration wave
AbstractThe aim of this paper is to examine the relationship between ethnic heterogeneity and redistribution, by using the recent and massive arrival of immigrants in Spain. Specifically, we focus on the effect of changes in immigrant density, recorded between 1998 and 2006, on contemporaneous changes in municipal welfare spending. We instrument for immigrant density using established settlement patterns per country of origin so as to assign predicted flows of immigrants to municipalities. We find that welfare spending increased less in those municipalities that recorded the largest increases in immigrant density. We also provide evidence of a positive relationship between immigrant density and the vote share accruing to right-wing parties. Hence, our results are consistent with theories that predict a negative relationship between ethnic heterogeneity and redistribution.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2011/34.
Length: 35 pages
Date of creation: 2011
Date of revision:
Welfare spending; immigration; ethnic heterogeneity; redistribution;
Other versions of this item:
- Jordi Jofre-Monseny (Universitat de Barcelona & Institut dEconomia de Barcelona (IEB)) & Pilar Sorribas-Navarro (Universitat de Barcelona & Institut dEconomia de Barcelona (IEB)) & Javier Vazquez-Gren, 2011. "Welfare spending and ethnic heterogeneity: Evidence from a massive immigration wave," Working Papers in Economics 269, Universitat de Barcelona. Espai de Recerca en Economia.
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
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.:
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