Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity
This paper revisits the magnet hypothesis and investigates the impact of the welfare generosity on the difference between skilled and unskilled migration rates. The main purpose of the paper is to assess the role of mobility restriction on shaping the effect of the welfare state generosity. In a free migration regime, the impact is expected to be negative on the skill composition of migrants while in a restricted mobility regime, the impact will be the opposite, as voters will prefer selective migration policies, favoring skilled migrants who tend to be net contributors to the fiscal system. We utilize the free labor movement within EUR (the EU, Norway and Switzerland) and the restricted movement from outside of the EUR to compare the free migration regime to the restricted migration regime. We find strong support for the "magnet hypothesis" under the free-migration regime, and the "fiscal burden hypothesis" under the restricted-migration regime even after controlling for differences in educational quality and returns to skills in source and host countries.
|Date of creation:||Nov 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frédéric DOCQUIER & Hillel RAPOPORT & Sara SALOMONE, 2011.
"Remittances, Migrants’Education and Immigration Policy: Theory and Evidence from Bilateral Data,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2011012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Docquier, Frédéric & Rapoport, Hillel & Salomone, Sara, 2012. "Remittances, migrants' education and immigration policy: Theory and evidence from bilateral data," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 817-828.
- Frédéric Docquier & Hillel Rapoport & Sara Salomone, 2011. "Remittances, Migrants’ Education and Immigration Policy: Theory and Evidence from Bilateral Data," Working Papers 2011-27, Bar-Ilan University, Department of Economics.
- Frédéric Docquier & Hillel Rapoport & Sara Salomone, 2011. "Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data," CReAM Discussion Paper Series 1119, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Docquier, Frédéric & Rapoport, Hillel & Salomone, Sara, 2011. "Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data," IZA Discussion Papers 6104, Institute for the Study of Labor (IZA).
- Borjas, George J, 1987.
"Self-Selection and the Earnings of Immigrants,"
American Economic Review,
American Economic Association, vol. 77(4), pages 531-53, September.
- Phillip B. Levine & David J. Zimmerman, 1999.
"An empirical analysis of the welfare magnet debate using the NLSY,"
Journal of Population Economics,
Springer, vol. 12(3), pages 391-409.
- P. B. Levine & D. J. Zimmerman, . "An empirical analysis of the welfare magnet debate using the NLSY," Institute for Research on Poverty Discussion Papers 1098-96, University of Wisconsin Institute for Research on Poverty.
- Phillip B. Levine & David J. Zimmerman, 1995. "An Empirical Analysis of the Welfare Magnet Debate Using the NLSY," NBER Working Papers 5264, National Bureau of Economic Research, Inc.
- Borjas, George J, 1999.
"Immigration and Welfare Magnets,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 607-37, October.
- Grogger, Jeffrey & Hanson, Gordon H., 2011.
"Income maximization and the selection and sorting of international migrants,"
Journal of Development Economics,
Elsevier, vol. 95(1), pages 42-57, May.
- Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Simon Johnson, 2003.
NBER Working Papers
9934, National Bureau of Economic Research, Inc.
- McKinnish, Terra, 2007. "Welfare-induced migration at state borders: New evidence from micro-data," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 437-450, April.
- Serge Coulombe & Jean-Francois Tremblay, 2009. "Migration and Skills Disparities across the Canadian Provinces," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 5-18.
- De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
- Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-54, July.
- Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 505-525, January.
When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2012036. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norface Migration Administrator)or (Thomas Cornelissen)
If references are entirely missing, you can add them using this form.