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The Welfare Magnet Hypothesis: Evidence from an Immigrant Welfare Scheme in Denmark: Comment

Author

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  • Adema, Joop

Abstract

Agersnap, Jensen and Kleven (2020) study the effect of changes in welfare benefit levels on immigration in Denmark, reporting a large migration elasticity of 1.3. However, their approach reports an illdefined net migration elasticity, conflates migration with migrant residents turning 30, and is sensitive to origin-country shocks. All of these exaggerate the size of the welfare magnet effect. Using an alternative approach that addresses these concerns, I find substantially lower migration elasticities: at most 0.28 for arrivals and 0.14 for stocks. Moreover, I find that lower benefits do not increase the average skill level of migrants.

Suggested Citation

  • Adema, Joop, 2026. "The Welfare Magnet Hypothesis: Evidence from an Immigrant Welfare Scheme in Denmark: Comment," I4R Discussion Paper Series 302, The Institute for Replication (I4R).
    • Handle: RePEc:zbw:i4rdps:302
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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