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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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.
    3. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    4. 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.
    5. 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 goodthing?," EEAG Report on the European Economy, CESifo, vol. 0, pages 78-96, February.
    6. Ian Preston, 2014. "The Effect of Immigration on Public Finances," Economic Journal, Royal Economic Society, vol. 124(580), pages 569-592, November.
    7. Zimmermann, Klaus F., 2013. "The Mobility Challenge for Growth and Integration in Europe," IZA Policy Papers 69, Institute of Labor Economics (IZA).
    8. Zimmermann, Klaus F., 2018. "Social Cohesion and Labor Mobility," GLO Discussion Paper Series 249, Global Labor Organization (GLO).

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    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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