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Welfare Migration

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  • Corrado Giulietti

    ()
    (IZA - Institute for the Study of Labor)

  • Jackline Wahba

    ()
    (University of Southampton and IZA)

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 Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2012038.

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Date of creation: Nov 2012
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Handle: RePEc:nor:wpaper:2012038

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Keywords: immigration; welfare spending;

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References

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  1. 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 43, Institute for the Study of Labor (IZA).
  2. Mayda, Anna Maria, 2007. "International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows," CEPR Discussion Papers 6289, C.E.P.R. Discussion Papers.
  3. Borjas, George J & Hilton, Lynette, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 575-604, May.
  4. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer, vol. 12(3), pages 391-409.
  5. Tito Boeri, 2010. "Immigration to the Land of Redistribution," LEQS – LSE 'Europe in Question' Discussion Paper Series 05, European Institute, LSE.
  6. Jim Dolmas & Gregory W. Huffman, 1998. "On the political economy of immigration and income redistribution," Working Papers 9804, Federal Reserve Bank of Dallas.
  7. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
  8. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
  9. Barrett, Alan & McCarthy, Yvonne, 2008. "Immigrants and Welfare Programmes: Exploring the Interactions between Immigrant Characteristics, Immigrant Welfare Dependence and Welfare Policy," IZA Discussion Papers 3494, Institute for the Study of Labor (IZA).
  10. Terra McKinnish, 2005. "Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  11. Michele Pellizzari, 2013. "The use of welfare by migrants in Italy," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 155-166, February.
  12. Assaf Razin & Jackline Wahba, 2011. "Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity," NBER Working Papers 17515, National Bureau of Economic Research, Inc.
  13. Constant, Amelie F., 2011. "Sizing It Up: Labor Migration Lessons of the EU Enlargement to 27," IZA Discussion Papers 6119, Institute for the Study of Labor (IZA).
  14. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant participation in the welfare system," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
  15. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321.
  16. McKinnish, Terra, 2007. "Welfare-induced migration at state borders: New evidence from micro-data," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 437-450, April.
  17. 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.
  18. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute for the Study of Labor (IZA).
  19. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-54, July.
  20. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
  21. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
  22. Böheim, René & Mayr, Karin, 2005. "Immigration and Public Spending," IZA Discussion Papers 1834, Institute for the Study of Labor (IZA).
  23. Razin, Assaf & Sadka, Efraim & Suwankiri, Benjarong, 2011. "Migration and the Welfare State: Political-Economy Policy Formation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016109, December.
  24. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
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Citations

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Cited by:
  1. Zimmermann, Klaus F., 2013. "The Mobility Challenge for Growth and Integration in Europe," IZA Policy Papers 69, Institute for the Study of Labor (IZA).
  2. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  3. 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 2013/8, Free University Berlin, School of Business & Economics.
  4. Ian Preston, 2013. "The Effect of Immigration on Public Finances," CReAM Discussion Paper Series 1323, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

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