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Immigration and voting on the size and the composition of public spending

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  • Karin Mayr

    () (University of Vienna)

Abstract

This paper develops a model to analyze the effects of immigration by skill on the outcome of a majority vote among natives on both the size as well as the composition of public spending. Public spending can be of two types, spending on rival goods (transfers) and on non-rival goods (public goods). I find that the effect of immigration on public spending depends on preferences for the different types of spending. In particular, immigrants of either skill can increase (decrease) the size of total public spending, if natives have a relative preference for spending on public goods (spending on transfers). I provide some illustration of spending patterns in OECD countries during 1980 - 2010.

Suggested Citation

  • Karin Mayr, 2011. "Immigration and voting on the size and the composition of public spending," Norface Discussion Paper Series 2011001, Norface Research Programme on Migration, Department of Economics, University College London.
  • Handle: RePEc:nor:wpaper:2011001
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    Keywords

    immigration; political economy; transfers; public goods;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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