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

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Author Info
Karin Mayr () (Department of Economics, Johannes Kepler University Linz, Austria)

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Abstract

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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Related research
Keywords: Political Economy; Immigration; Income Redistribution;

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

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    Other versions:
  6. Mazza, Isidoro & van Winden, Frans, 1996. " A Political Economic Analysis of Labor Migration and Income Redistribution," Public Choice, Springer, vol. 88(3-4), pages 333-63, September.
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  15. Sinn, Hans-Werner, 2002. "EU Enlargement and the Future of the Welfare State," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 104-15, February. [Downloadable!] (restricted)
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  19. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November. [Downloadable!] (restricted)
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  21. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
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    Other versions:
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