Arbeitspapier

Immigration and Redistribution

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 13676

Classification
Wirtschaft
International Migration
Subject
migration
redistribution
public policy

Event
Geistige Schöpfung
(who)
Elsner, Benjamin
Concannon, Jeff
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2020

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Elsner, Benjamin
  • Concannon, Jeff
  • Institute of Labor Economics (IZA)

Time of origin

  • 2020

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