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Financing public goods and attitudes toward immigration

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  • Gabriel Romero

    () (Departamento de Economía)

  • Iñigo Iturbe-Ormaetxe Kortajarene

    () (Universidad de Alicante)

Abstract

We present a model in which individuals choose both the level of provision of a public good and the quota of low-skilled immigrants that are allowed into the country. Individuals can supplement the public good in the private market. Immigrants affect natives through three channels: (i) the labor market; (ii) tax collection; (iii) the quality of the public good. We find that the higher the political weight of the rich (highly skilled) is, the less tolerant the poor and the middle-class are toward immigration and the more demanding they are toward increasing public spending. The rich are the most favorable to immigration. As they have more weight, the political outcome is closer to their preferences and further from the preferences of the other groups. We use data from the European Social Survey to test the implications of our model.

Suggested Citation

  • Gabriel Romero & Iñigo Iturbe-Ormaetxe Kortajarene, 2013. "Financing public goods and attitudes toward immigration," Working Papers. Serie AD 2013-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2013-09
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    References listed on IDEAS

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    Cited by:

    1. Huber, Peter & Oberdabernig, Doris A., 2016. "The impact of welfare benefits on natives' and immigrants' attitudes toward immigration," European Journal of Political Economy, Elsevier, vol. 44(C), pages 53-78.
    2. repec:eee:poleco:v:52:y:2018:i:c:p:141-165 is not listed on IDEAS

    More about this item

    Keywords

    Probabilistic voting model; public goods; immigration;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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