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Welfare Migration

Author

Listed:
  • Corrado Giulietti

    () (IZA - Institute for the Study of Labor)

  • Jackline Wahba

    () (University of Southampton and IZA)

Abstract

This chapter reviews and discusses major theories and empirical studies about the welfare magnet hypothesis, i.e. whether immigrants are more likely to move to countries with generous welfare systems. Although economic theory predicts that welfare generosity affects the number, composition and location of immigrants, the empirical evidence is rather mixed. We offer possible explanations for the existence of such mixed evidence and highlight that the literature so far has overlooked the presence of different migration regimes, as well as the possibility of reverse causality between welfare spending and immigration.

Suggested Citation

  • Corrado Giulietti & Jackline Wahba, 2012. "Welfare Migration," Norface Discussion Paper Series 2012038, Norface Research Programme on Migration, Department of Economics, University College London.
  • Handle: RePEc:nor:wpaper:2012038
    as

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    File URL: http://www.norface-migration.org/publ_uploads/NDP_38_12.pdf
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    Other versions of this item:

    • Corrado Giulietti & Jackline Wahba, 2013. "Welfare migration," Chapters,in: International Handbook on the Economics of Migration, chapter 26, pages 489-504 Edward Elgar Publishing.

    References listed on IDEAS

    as
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    4. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 391-409.
    5. Corrado Giulietti & Martin Guzi & Martin Kahanec & Klaus F. Zimmermann, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 24-38, March.
    6. Michele Pellizzari, 2013. "The use of welfare by migrants in Italy," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 155-166, May.
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    Citations

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    Cited by:

    1. Ian Preston, 2014. "The Effect of Immigration on Public Finances," Economic Journal, Royal Economic Society, vol. 124(580), pages 569-592, November.
    2. Skupnik, Christoph, 2013. ""Welfare magnetism" in the EU-15? Why the EU enlargement did not start a race to the bottom of welfare states," Discussion Papers 2013/8, Free University Berlin, School of Business & Economics.
    3. Alm, James & Enami, Ali, 2017. "Do government subsidies to low-income individuals affect interstate migration? Evidence from the Massachusetts Health Care Reform," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 119-131.
    4. Zimmermann, Klaus F., 2013. "The Mobility Challenge for Growth and Integration in Europe," IZA Policy Papers 69, Institute for the Study of Labor (IZA).
    5. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers 2013/79, European University Institute.
    6. Nowotny, Klaus, 2013. "Institutions and the Location Decisions of Highly Skilled Migrants to Europe," Working Papers in Economics 2013-3, University of Salzburg.
    7. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, Elsevier.
    8. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2015. "Chapter 4: Migration in the European Union: Too much of a good thing?," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 78-96, February.

    More about this item

    Keywords

    immigration; welfare spending;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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