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Does immigration decrease far-right popularity? Evidence from Finnish municipalities

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  • Jakub Lonsky

    (University of Oxford)

Abstract

Across Europe, far-right parties have made significant electoral gains in recent years. Their anti-immigration stance is considered one of the main factors behind their success. Using data from Finland, this paper studies the effect of immigration on voting for the far-right Finns Party on a local level. Exploiting a convenient setup for a shift-share instrument, I find that a 1 percentage point increase in the share of foreign citizens in a municipality decreases the Finns Party’s vote share by 3.4 percentage points. Placebo tests using pre-period data confirm this effect is not driven by persistent trends at the municipality level. The far-right votes lost to immigration are captured by the two pro-immigration parties. Turning to potential mechanisms, immigration is found to increase voter turnout, potentially activating local pro-immigration voters. Moreover, the negative effect is only present in municipalities with high initial exposure to immigrants, consistent with the intergroup contact theory. Finally, I also provide some evidence for the welfare-state channel as a plausible mechanism behind the main result.

Suggested Citation

  • Jakub Lonsky, 2021. "Does immigration decrease far-right popularity? Evidence from Finnish municipalities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 97-139, January.
    • Handle: RePEc:spr:jopoec:v:34:y:2021:i:1:d:10.1007_s00148-020-00784-4
    DOI: 10.1007/s00148-020-00784-4
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    1. Chris Sampson’s journal round-up for 23rd November 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-11-23 12:00:14

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    Cited by:

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    2. Zhang, Zhijian & Wang, Xueyuan, 2022. "Birthplace diversity and private giving: Evidence from China," China Economic Review, Elsevier, vol. 74(C).
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    4. Campo, Francesco & Giunti, Sara & Mendola, Mariapia, 2021. "The Refugee Crisis and Right-Wing Populism: Evidence from the Italian Dispersal Policy," IZA Discussion Papers 14084, Institute of Labor Economics (IZA).
    5. Silvia Peracchi, 2022. "The Migration Crisis in the Local News: Evidence from the French-Italian Border," CESifo Working Paper Series 10070, CESifo.
    6. Rania Gihleb & Osea Giuntalla & Luca Stella, 2022. "Exposure to Past Immigration Waves and Attitudes toward Newcomers," CESifo Working Paper Series 9941, CESifo.
    7. Kayaoglu, Aysegul, 2022. "Do refugees cause crime?," World Development, Elsevier, vol. 154(C).

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    More about this item

    Keywords

    Immigration; Far-right; Political economy; Voting;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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