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Does migration threaten the sustainability of European welfare states?

Author

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  • Peter Huber
  • Doris A. Oberdabernig

Abstract

We investigate the relative contributions of migrant and native households to welfare states. Using two step Oaxaca-Blinder decompositions that control for selection into bene t take-up, we are able to identify the individual variables contributing to di erences in welfare receipt by native and migrant households. We nd that most of the di erences are explained by observable characteristics such as size of the household as well as age and education of its head and income in some countries. In contrast, signi cantly lower net contributions of migrant households to the state budget persist in many countries even after controlling for observable factors. The reasons for this are primarily lower tax payments of migrant households. Selective migration and sound integration policies and as well as policies avoiding marginalization of migrants in informal labor markets are therefore the most e ective means to avoid scal burdens of migration.

Suggested Citation

  • Peter Huber & Doris A. Oberdabernig, 2013. "Does migration threaten the sustainability of European welfare states?," WWWforEurope Working Papers series 21, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2013:m:7:d:0:i:21
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    References listed on IDEAS

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    Cited by:

    1. repec:feu:wfedel:y:2016:m:2:d:0:i:11 is not listed on IDEAS
    2. repec:feu:wfedel:y:2016:m:2:d:0:i:12 is not listed on IDEAS
    3. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition. Synthesis Report Part I," WWWforEurope Deliverables series 11, WWWforEurope.
    4. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving towards a new growth model," WWWforEurope Deliverables series 3, WWWforEurope.
    5. Gunther Tichy, 2015. "Protecting social inclusion and mobility in a low growth scenario," WWWforEurope Working Papers series 100, WWWforEurope.
    6. Burgos-Mascarell, Andrea & Ribeiro-Soriano, Domingo & Martínez-López, Miguel, 2016. "Dystopia deconstructed: Applying the triple helix model to a failed utopia," Journal of Business Research, Elsevier, vol. 69(5), pages 1845-1850.

    More about this item

    Keywords

    Oaxaca-Blinder decomposition; EU-countries; migration; net contributions; welfare state;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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