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Immigration and Majority Voting on Income Redistriubtion-Is there a Case for Opposition from Natives?

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This paper examines the effect of immigration on the level of income redistribution via majority voting on the income tax. As a main result, we derive multiple tax equilibria if immigrants are allowed to vote and the skill composition of natives is not too homogeneous. In this case, the outcome of a native referendum on giving immigrants the right to vote would be negative, since immigrants could overthrow the native majority and change the tax rate that is utility-maximising for natives. It is found that at best, natives are indifferent towards immigrant voting, and the outcome of a corresponding referendum would be indeterminate.

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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2003-08.

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Date of creation: Jul 2003
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Handle: RePEc:jku:econwp:2003_08

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Keywords: Political Economy; Immigration; Income Redistribution;

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