GINI DP 44: Immigration and Inequality in Europe
This paper aims at assessing the effect of immigration on native income inequality in Western Europe. I use different regional indicators of income inequality, which allow distinguishing between dispersion at the top and at the bottom of the income distribution, and correlate them to regional annual inflows of immigrants over the period 2004-2008. Results indicate that immigration is associated with a decrease of income inequality at the bottom of the distribution. However, IV estimates do not show any causal effect of immigration on income dispersion.
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