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 1993-2008 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6075.
Length: 19 pages
Date of creation: Oct 2011
Date of revision:
Publication status: published in: International Journal of Manpower, 2013, 34 (1), 24-38. Discussed in media like BBC, The Guardian, Handelsblatt, Die Welt, among others.
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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," CEPR Discussion Papers 8672, C.E.P.R. Discussion Papers.
- 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-2011-11-21 (All new papers)
- NEP-EEC-2011-11-21 (European Economics)
- NEP-EUR-2011-11-21 (Microeconomic European Issues)
- NEP-LAB-2011-11-21 (Labour Economics)
- NEP-LTV-2011-11-21 (Unemployment, Inequality & Poverty)
- NEP-MIG-2011-11-21 (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.:
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