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Income redistribution and self-selection of immigrants

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  • Corneo, Giacomo
  • Neidhöfer, Guido

Abstract

We analyze the effects of governmental redistribution of income on migration patterns using an Italian administrative dataset that includes almost every Italian citizen living abroad. Since Italy takes a middle ground in terms of redistribution, both the welfare-magnet effect from more redistributive countries and the propensity of the high-skilled to settle in countries with lower taxes can be empirically studied. Our findings confirm the hypothesis that destination countries with more redistribution receive a negative selection of Italian migrants. Policy simulations are run in order to gauge the magnitude of those migration effects. Based on estimated elasticities, we find that sizable increases in the amount of redistribution in Italy have small effects on the skill composition of the resident population.

Suggested Citation

  • Corneo, Giacomo & Neidhöfer, Guido, 2019. "Income redistribution and self-selection of immigrants," CEPR Discussion Papers 13694, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13694
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    Cited by:

    1. Kolb, Michael & Neidhöfer, Guido & Pfeiffer, Friedhelm, 2019. "Intergenerational mobility and self-selection of asylum seekers in Germany," ZEW Discussion Papers 19-027, ZEW - Leibniz Centre for European Economic Research.
    2. Michael Hebsaker & Guido Neidhöfer & Friedhelm Pfeiffer, 2021. "Intergenerational mobility and self-selection on unobserved skills: New evidence," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-9, December.

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    Keywords

    Roy model; Redistribution;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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