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Welfare Migration

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  • Giulietti, Corrado

    ()
    (IZA)

  • Wahba, Jackline

    ()
    (University of Southampton)

Abstract

This chapter reviews and discusses major theories and empirical studies about the welfare magnet hypothesis, i.e. whether immigrants are more likely to move to countries with generous welfare systems. Although economic theory predicts that welfare generosity affects the number, composition and location of immigrants, the empirical evidence is rather mixed. We offer possible explanations for the existence of such mixed evidence and highlight that the literature so far has overlooked the presence of different migration regimes, as well as the possibility of reverse causality between welfare spending and immigration.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6450.

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Length: 20 pages
Date of creation: Mar 2012
Date of revision:
Publication status: published in: Amelie F. Constant and Klaus F. Zimmermann (eds.), International Handbook on the Economics of Migration, Edward Elgar 2013, Cheltenham, UK, and Northampton, USA, Chapter 26, 489-504
Handle: RePEc:iza:izadps:dp6450

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Keywords: welfare spending; immigration;

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References

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  1. Barrett, Alan & McCarthy, Yvonne, 2008. "Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy," IZA Discussion Papers, Institute for the Study of Labor (IZA) 3494, Institute for the Study of Labor (IZA).
  2. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant participation in the welfare system," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
  3. Pellizzari, Michele, 2011. "The Use of Welfare by Migrants in Italy," IZA Discussion Papers, Institute for the Study of Labor (IZA) 5613, Institute for the Study of Labor (IZA).
  4. Giulietti, Corrado & Guzi, Martin & Kahanec, Martin & Zimmermann, Klaus F., 2011. "Unemployment Benefits and Immigration: Evidence from the EU," IZA Discussion Papers, Institute for the Study of Labor (IZA) 6075, Institute for the Study of Labor (IZA).
  5. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers, National Bureau of Economic Research, Inc 6813, National Bureau of Economic Research, Inc.
  6. Assaf Razin & Jackline Wahba, 2012. "Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2012036, Norface Research Programme on Migration, Department of Economics, University College London.
  7. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports, Institute for the Study of Labor (IZA) 43, Institute for the Study of Labor (IZA).
  8. René Böheim & Karin Mayr, 2005. "Immigration and public spending," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2005-12, Department of Economics, Johannes Kepler University Linz, Austria.
  9. Terra McKinnish, 2005. "Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 40(1).
  10. McKinnish, Terra, 2007. "Welfare-induced migration at state borders: New evidence from micro-data," Journal of Public Economics, Elsevier, Elsevier, vol. 91(3-4), pages 437-450, April.
  11. Jim Dolmas & Gregory W. Huffman, 1998. "On the political economy of immigration and income redistribution," Working Papers, Federal Reserve Bank of Dallas 9804, Federal Reserve Bank of Dallas.
  12. Tito Boeri, 2010. "Immigration to the Land of Redistribution," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 77(308), pages 651-687, October.
  13. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 19(4), pages 489-511.
  14. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, Elsevier, vol. 23(2), pages 512-532, June.
  15. Mayda, Anna Maria, 2007. "International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6289, C.E.P.R. Discussion Papers.
  16. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, Elsevier, vol. 52(7), pages 1160-1186, October.
  17. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer, Springer, vol. 12(3), pages 391-409.
  18. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., The Population Council, Inc., vol. 35(2), pages 297-321.
  19. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages 529-54, July.
  20. Constant, Amelie F., 2011. "Sizing It Up: Labor Migration Lessons of the EU Enlargement to 27," IZA Discussion Papers, Institute for the Study of Labor (IZA) 6119, Institute for the Study of Labor (IZA).
  21. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers, Institute for the Study of Labor (IZA) 4230, Institute for the Study of Labor (IZA).
  22. George J. Borjas & Lynette Hilton, 1995. "Immigration and the Welfare State: Immigrant Participation in Means- Tested Entitlement Programs," NBER Working Papers, National Bureau of Economic Research, Inc 5372, National Bureau of Economic Research, Inc.
  23. Razin, Assaf & Sadka, Efraim & Suwankiri, Benjarong, 2011. "Migration and the Welfare State: Political-Economy Policy Formation," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262016109, December.
  24. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, Elsevier, vol. 16(4), pages 353-363, August.
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Cited by:
  1. Skupnik, Christoph, 2013. ""Welfare magnetism" in the EU-15? Why the EU enlargement did not start a race to the bottom of welfare states," Discussion Papers, Free University Berlin, School of Business & Economics 2013/8, Free University Berlin, School of Business & Economics.
  2. Ian Preston, 2013. "The Effect of Immigration on Public Finances," CReAM Discussion Paper Series, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London 1323, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers, European University Institute 2013/79, European University Institute.
  4. Zimmermann, Klaus F., 2013. "The Mobility Challenge for Growth and Integration in Europe," IZA Policy Papers, Institute for the Study of Labor (IZA) 69, Institute for the Study of Labor (IZA).

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