IDEAS home Printed from https://ideas.repec.org/p/tse/wpaper/124108.html
   My bibliography  Save this paper

Taxation with Representation: The Political Economy of Foreigners’ Voting Rights

Author

Listed:
  • Gonnot, Jérôme

Abstract

This paper examines natives’ decision to grant political rights to foreign residents based on their contribution to a redistribution mechanism that finances a private and a public good. We propose a model where agents’ redistributive preferences are determined by their skill level and their cultural beliefs about public spending, which vary by skill and nationality. Contrary to a commonly held view in the political economy literature, we show that low-skill natives are willing to enfranchise relatively skilled foreigners as long as these foreigners have sufficiently liberal beliefs towards public spending. Moreover, we establish that the political rights that low-skill natives are prepared to grant to foreign residents is a nonmonotonic function of immigration’s skill level and cultural support for public expenditure. In particular, low-skill natives favor greater political integration for less-skilled or more liberal foreigners if and only if these foreigners’ average relative preferences for the private and the public good are sufficiently close to their own. We provide empirical support for some of the theoretical predictions of the model using an original municipality-level dataset of Swiss referenda about non-citizen voting rights. Our results indicate that municipalities where a higher share of natives received social transfers were more likely to support immigrant voting and that this effect was greater where foreigners were poorer and emigrated from less economically conservative countries.

Suggested Citation

  • Gonnot, Jérôme, 2020. "Taxation with Representation: The Political Economy of Foreigners’ Voting Rights," TSE Working Papers 20-1077, Toulouse School of Economics (TSE).
  • Handle: RePEc:tse:wpaper:124108
    as

    Download full text from publisher

    File URL: https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2020/wp_tse_1077.pdf
    File Function: Full Text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Humberto Llavador & Robert J. Oxoby, 2005. "Partisan Competition, Growth, and the Franchise," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 1155-1189.
    2. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-479, June.
    3. Jack, William & Lagunoff, Roger, 2006. "Dynamic enfranchisement," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 551-572, May.
    4. Bertocchi, Graziella, 2011. "The enfranchisement of women and the welfare state," European Economic Review, Elsevier, vol. 55(4), pages 535-553, May.
    5. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
    6. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 699-746.
    7. John E. Roemer & Karine Van der Straeten, 2006. "The Political Economy of Xenophobia and Distribution: The Case of Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(2), pages 251-277, July.
    8. Fabio Mariani, 2013. "The political economy of naturalization," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 656-688, May.
    9. John E. Roemer & Lee Woojin & Karine van der Straeten, 2007. "Racism, Xenophobia, and Distribution: Multi-issue Politics in Advanced Democracies," Post-Print halshs-00754747, HAL.
    10. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    11. David Card & Christian Dustmann & Ian Preston, 2012. "Immigration, Wages, And Compositional Amenities," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 78-119, February.
    12. Graziella Bertocchi & Chiara Strozzi, 2010. "The Evolution of Citizenship: Economic and Institutional Determinants," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 95-136, February.
    13. Daron Acemoglu & James A. Robinson, 2000. "Why Did the West Extend the Franchise? Democracy, Inequality, and Growth in Historical Perspective," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1167-1199.
    14. Ortega Francesc, 2010. "Immigration, Citizenship, and the Size of Government," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, March.
    15. Woojin Lee & John Roemer & Karine Van der Straeten, 2006. "Racism, Xenophobia, and Redistribution," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 446-454, 04-05.
    16. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Labor Market Competition And Individual Preferences Over Immigration Policy," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 133-145, February.
    17. Jim Dolmas & Gregory W. Huffman, 2004. "On The Political Economy Of Immigration And Income Redistribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1129-1168, November.
    18. Alessandro Lizzeri & Nicola Persico, 2004. "Why did the Elites Extend the Suffrage? Democracy and the Scope of Government, with an Application to Britain's "Age of Reform"," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 707-765.
    19. Otto, Alkis Henri & Steinhardt, Max Friedrich, 2014. "Immigration and election outcomes — Evidence from city districts in Hamburg," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 67-79.
    20. Iturbe-Ormaetxe, Iñigo & Romero, J. Gabriel, 2016. "Financing public goods and attitudes toward immigration," European Journal of Political Economy, Elsevier, vol. 44(C), pages 159-178.
    21. Erzo F. P. Luttmer & Monica Singhal, 2011. "Culture, Context, and the Taste for Redistribution," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 157-179, February.
    22. Stutzer, Alois & Slotwinski, Michaela, 2019. "Power Sharing at the Local Level: Evidence on Opting-In for Non-Citizen Voting Rights," Working papers 2019/19, Faculty of Business and Economics - University of Basel.
    23. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    24. Kåre Vernby, 2013. "Inclusion and Public Policy: Evidence from Sweden’s Introduction of Noncitizen Suffrage," American Journal of Political Science, John Wiley & Sons, vol. 57(1), pages 15-29, January.
    25. Moriconi, Simone & Peri, Giovanni & Turati, Riccardo, 2019. "Immigration and voting for redistribution: Evidence from European elections," Labour Economics, Elsevier, vol. 61(C).
    26. Assaf Razin & Efraim Sadka, 2000. "Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-479, September.
    27. Fabio Mariani, 2013. "The political economy of naturalization," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 656-688, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elsner, Benjamin & Concannon, Jeff, 2020. "Immigration and Redistribution," IZA Discussion Papers 13676, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elsner, Benjamin & Concannon, Jeff, 2020. "Immigration and Redistribution," IZA Discussion Papers 13676, Institute of Labor Economics (IZA).
    2. Anna Maria Koukal & Reiner Eichenberger & Patricia Schafera, 2019. "Enfranchising Foreigners: What Drives Natives’ Willingness to Share Power?," CREMA Working Paper Series 2019-10, Center for Research in Economics, Management and the Arts (CREMA).
    3. Jonathan Chapman, 2020. "Extension of the Franchise and Government Expenditure on Public Goods: Evidence from Nineteenth-Century England," Working Papers 20200045, New York University Abu Dhabi, Department of Social Science, revised Mar 2020.
    4. Graziella Bertocchi & Chiara Strozzi, 2010. "The Evolution of Citizenship: Economic and Institutional Determinants," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 95-136, February.
    5. Poutvaara, Panu & Steinhardt, Max Friedrich, 2018. "Bitterness in life and attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 55(C), pages 471-490.
    6. Bisin, Alberto & Verdier, Thierry, 2017. "Inequality, redistribution and cultural integration in the Welfare State," European Journal of Political Economy, Elsevier, vol. 50(C), pages 122-140.
    7. Alesina, Alberto & Murard, Elie & Rapoport, Hillel, 2019. "Immigration and Preferences for Redistribution in Europe," IZA Discussion Papers 12130, Institute of Labor Economics (IZA).
    8. 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.
    9. Francesc Ortega, 2004. "Immigration and the survival of the welfare state," Economics Working Papers 815, Department of Economics and Business, Universitat Pompeu Fabra.
    10. Giuranno, Michele G. & Rongili, Biswas, 2012. "Inter-jurisdictional migration and the size of government," MPRA Paper 42604, University Library of Munich, Germany.
    11. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2018. "Immigration and the Future of the Welfare State in Europe," PSE Working Papers halshs-01707760, HAL.
    12. Kammas, Pantelis & Sarantides, Vassilis, 2020. "Democratisation and tax structure in the presence of home production: Evidence from the Kingdom of Greece," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 219-236.
    13. Poutvaara, Panu & Steinhardt, Max Friedrich, 2018. "Bitterness in life and attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 55(C), pages 471-490.
    14. Ortega Francesc, 2010. "Immigration, Citizenship, and the Size of Government," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, March.
    15. Christine Fauvelle-Aymar, 2014. "The welfare state, migration, and voting rights," Public Choice, Springer, vol. 159(1), pages 105-120, April.
    16. Raul Magni-Berton, 2014. "Immigration, redistribution, and universal suffrage," Public Choice, Springer, vol. 160(3), pages 391-409, September.
    17. Graziella Bertocchi, 2011. "The Vanishing Bequest Tax: The Comparative Evolution Of Bequest Taxation In Historical Perspective," Economics and Politics, Wiley Blackwell, vol. 23(1), pages 107-131, March.
    18. Ortega, Francesc & Polavieja, Javier G., 2012. "Labor-market exposure as a determinant of attitudes toward immigration," Labour Economics, Elsevier, vol. 19(3), pages 298-311.
    19. Brunner, Beatrice & Kuhn, Andreas, 2014. "Immigration, Cultural Distance and Natives' Attitudes Towards Immigrants: Evidence from Swiss Voting Results," IZA Discussion Papers 8409, Institute of Labor Economics (IZA).
    20. Christopher Ellis & John Fender, 2016. "Information Aggregation, Growth, And Franchise Extension With Applications To Female Enfranchisement And Inequality," Bulletin of Economic Research, Wiley Blackwell, vol. 68(3), pages 239-267, April.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tse:wpaper:124108. 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: (). General contact details of provider: http://edirc.repec.org/data/tsetofr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.