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Financing public goods and attitudes toward immigration

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  • Gabriel Romero

    ()
    (Departamento de Economía)

  • Iñigo Iturbe-Ormaetxe Kortajarene

    ()
    (Universidad de Alicante)

Abstract

We present a model in which individuals choose both the level of provision of a public good and the quota of low-skilled immigrants that are allowed into the country. Individuals can supplement the public good in the private market. Immigrants affect natives through three channels: (i) the labor market; (ii) tax collection; (iii) the quality of the public good. We find that the higher the political weight of the rich (highly skilled) is, the less tolerant the poor and the middle-class are toward immigration and the more demanding they are toward increasing public spending. The rich are the most favorable to immigration. As they have more weight, the political outcome is closer to their preferences and further from the preferences of the other groups. We use data from the European Social Survey to test the implications of our model.

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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2013-09.

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Length: 59 pages
Date of creation: Dec 2013
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2013-09

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Keywords: Probabilistic voting model; public goods; immigration;

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  1. Blau, Francine D. & Kahn, Lawrence M., 2012. "Immigration and the Distribution of Incomes," IZA Discussion Papers 6921, Institute for the Study of Labor (IZA).
  2. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," NBER Working Papers 16736, National Bureau of Economic Research, Inc.
  3. Llavador, Humberto & Solano-García, Angel, 2011. "Immigration policy with partisan parties," Journal of Public Economics, Elsevier, vol. 95(1), pages 134-142.
  4. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  5. John Roemer & Karine Van-Der-Straeten, 2004. "The political economy of xenophobia and distribution : the case of Denmark," Working Papers hal-00242915, HAL.
  6. Anna Maria Mayda, 2004. "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," Development Working Papers 187, Centro Studi Luca d\'Agliano, University of Milano.
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