Immigration and Redistribution

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Title: Immigration and Redistribution
Authors: Elsner, BenjaminConcannon, Jeff
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Date: Sep-2020
Online since: 2020-09-22T14:39:21Z
Abstract: One of the fundamental questions in the social sciences is whether modern welfare states can be sustained as countries welcome more immigrants. On theoretical grounds, the relationship between immigration and support for redistribution is ambiguous. Immigration may increase ethnic diversity, which may reduce the support for redistribution. On the other hand, natives may demand more redistribution as an insurance against labour market risks brought by immigration. In this chapter, we review the theoretical and empirical literature on immigration and redistribution from across the social sciences. We focus on two themes, namely the effect of immigration on natives’ support for redistribution, and the effect on the actual setting of tax and spending policies. Recent empirical evidence suggests that immigration lowers the support for redistribution and leads to lower taxation and spending. However, the magnitude of these effects appears to be highly context-dependent.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Start page: 1
End page: 28
Series/Report no.: UCD Centre for Economic Reearch Working Paper Series; WP2020/24
Copyright (published version): 2020 the Authors
Keywords: MigrationRedistributionPublic policy
metadata.dc.subject.classification: F22; H2; H4
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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