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The Political Economy of Xenophobia and Distribution: The Case of Denmark

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  • John E. Roemer
  • Karine Van der Straeten

Abstract

For the first time in some years, a conservative government came to power in Denmark in 2001, due primarily to the citizenry's disaffection with social-democratic policies on immigration. We represent political competition in Denmark as taking place over two issues-the size of the public sector and immigration-and model political equilibrium using the party unanimity Nash equilibrium (PUNE) concept, which generates equilibria on multi-dimensional policy spaces where parties form endogenously. By fitting the model to Danish data, we argue that citizen xenophobia may be expected to decrease the size of the Danish public sector by an amount between 12% and 36% of one standard deviation of the probability distribution of citizens' ideal points of the size of the public sector. Copyright The editors of the "Scandinavian Journal of Economics" 2006 .

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  • John E. Roemer & Karine Van der Straeten, 2006. "The Political Economy of Xenophobia and Distribution: The Case of Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(2), pages 251-277, July.
  • Handle: RePEc:bla:scandj:v:108:y:2006:i:2:p:251-277
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    Cited by:

    1. Christian Dustmann & Francesca Fabbri & Ian Preston, 2011. "Racial Harassment, Ethnic Concentration, and Economic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 689-711, September.
    2. Iturbe-Ormaetxe, Iñigo & Romero, J. Gabriel, 2016. "Financing public goods and attitudes toward immigration," European Journal of Political Economy, Elsevier, vol. 44(C), pages 159-178.
    3. Elvire Guillaud, 2011. "Preferences for redistribution : an empirical analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00594072, HAL.
    4. Elvire Guillaud, 2008. "Preferences for redistribution: a European comparative analysis," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00586260, HAL.
    5. Elvire Guillaud & Stefano Palombarini, 2006. "Evolution des attentes sociales et comportement électoral : France, 1978-2002," PSE Working Papers halshs-00590295, HAL.
    6. Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
    7. Cécile BATISSE & Nong ZHU, 2009. "L’effet des politiques sociales sur l’emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers 200925, CERDI.
    8. Lars Feld & Jan Schnellenbach, 2014. "Political institutions and income (re-)distribution: evidence from developed economies," Public Choice, Springer, vol. 159(3), pages 435-455, June.
    9. Holger Stichnoth, 2012. "Does immigration weaken natives’ support for the unemployed? Evidence from Germany," Public Choice, Springer, vol. 151(3), pages 631-654, June.
    10. Stichnoth, Holger, 2010. "Does immigration weaken natives' support for the welfare state? Evidence from Germany," ZEW Discussion Papers 10-008, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    11. Nong Zhu & Cecile Batisse, 2014. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal," CIRANO Working Papers 2014s-05, CIRANO.
    12. Jo Thori Lind, 2005. "Why is there so little redistribution?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 111-125.
    13. Elvire Guillaud, 2013. "Preferences for redistribution: an empirical analysis over 33 countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 57-78, March.
    14. Anesi, Vincent & De Donder, Philippe, 2007. "Party Formation and Racism," CEPR Discussion Papers 6281, C.E.P.R. Discussion Papers.
    15. Bisin, Alberto & Verdier, Thierry, 2017. "Inequality, redistribution and cultural integration in the Welfare State," European Journal of Political Economy, Elsevier, vol. 50(C), pages 122-140.
    16. repec:hal:journl:halshs-00594072 is not listed on IDEAS
    17. Elvire Guillaud, 2008. "Preferences for redistribution: a European comparative analysis," Working Papers halshs-00586260, HAL.
    18. Benos, Nikos & Kammas, Pantelis, 2018. "Workers of the world unite (or not?) The effect of ethnic diversity on the participation in trade unions," MPRA Paper 84880, University Library of Munich, Germany.
    19. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    20. Gerdes, Christer & Wadensjö, Eskil, 2008. "The Impact of Immigration on Election Outcomes in Danish Municipalities," IZA Discussion Papers 3586, Institute for the Study of Labor (IZA).
    21. Ulrich Hendel & Salmai Qari, 2014. "Immigration and Attitudes Towards Day Care," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 997-1029, November.
    22. Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers halshs-00554261, HAL.
    23. Elvire Guillaud & Stefano Palombarini, 2006. "Evolution des attentes sociales et comportement électoral : France, 1978-2002," Working Papers halshs-00590295, HAL.

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