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Self-Selection and Earnings of Emigrants from a Welfare State

Author

Listed:
  • Poutvaara, Panu

    () (University of Munich)

  • Munk, Martin D.

    () (Aalborg University)

  • Junge, Martin

    ()

Abstract

Following a seminal contribution by Borjas (1987), a large literature has analyzed how income distribution and redistribution are related to immigration to various rich countries. In this paper, we take a look at the other side of the coin. We analyze emigration from Denmark, which is one of the richest and most redistributive European Welfare States. Using comprehensive register data on full population and a unique new representative survey, we analyze whether Danes with relatively high earnings ability favor countries with more unequal income distribution and lower taxes, like the United States.

Suggested Citation

  • Poutvaara, Panu & Munk, Martin D. & Junge, Martin, 2009. "Self-Selection and Earnings of Emigrants from a Welfare State," IZA Discussion Papers 4144, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4144
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    References listed on IDEAS

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    1. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
    2. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-176, February.
    3. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
    4. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
    5. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    6. Lundborg, Per, 1991. " Determinants of Migration in the Nordic Labor Market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(3), pages 363-375.
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    Cited by:

    1. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    migration; emigration; redistribution; brain drain; education;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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