IDEAS home Printed from https://ideas.repec.org/a/kap/poprpr/v41y2022i2d10.1007_s11113-021-09669-0.html
   My bibliography  Save this article

The Welfare State as Safety Net in Migration Preferences: Empirical Evidence from an Experiment Among Dutch Master Students

Author

Listed:
  • Petra W. Jong

    (Netherlands Interdisciplinary Demographic Institute (NIDI)-KNAW/University of Groningen)

  • Kim Caarls

    (Netherlands Interdisciplinary Demographic Institute (NIDI)-KNAW/University of Groningen)

  • Helga A. G. Valk

    (Netherlands Interdisciplinary Demographic Institute (NIDI)-KNAW/University of Groningen)

Abstract

The welfare state can be perceived as a safety net which helps individuals adjust to situations of risk or transition. Starting from this idea of the welfare state as safety net, this study addresses whether and how welfare generosity may influence people’s willingness to migrate. In doing so, we distinguish between two potential mechanisms, innovatively focusing on welfare provisions in both the country of origin and destination. First, a generous welfare system in the country of origin may have a retaining impact, as individuals may be unwilling to migrate to countries offering less social protection. Second, generous welfare provisions in the country of destination may enable migration for individuals who are more intolerant of uncertainty and who otherwise would prefer to remain immobile. We test both mechanisms using stated preference data collected with a unique experimental design among over 300 Dutch Master students. Confirming the first mechanism, we indeed find that respondents report a lower willingness to migrate when evaluating hypothetical scenarios where the level of social protection was higher in the country of origin as compared with the country of destination. Furthermore, and in line with the second mechanism, individuals who are more intolerant of uncertainty generally report a lower willingness to migrate, yet their willingness to migrate increases for scenarios with higher levels of unemployment benefits. Our findings, thus, indeed suggest that welfare arrangements are mainly serving a safety net function and need to be understood in relative terms between the country of origin and destination.

Suggested Citation

  • Petra W. Jong & Kim Caarls & Helga A. G. Valk, 2022. "The Welfare State as Safety Net in Migration Preferences: Empirical Evidence from an Experiment Among Dutch Master Students," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 671-694, April.
  • Handle: RePEc:kap:poprpr:v:41:y:2022:i:2:d:10.1007_s11113-021-09669-0
    DOI: 10.1007/s11113-021-09669-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11113-021-09669-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11113-021-09669-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Assaf Razin & Jackline Wahba, 2015. "Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 369-402, April.
    2. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
    3. Hein de Haas & Mathias Czaika & Marie‐Laurence Flahaux & Edo Mahendra & Katharina Natter & Simona Vezzoli & María Villares‐Varela, 2019. "International Migration: Trends, Determinants, and Policy Effects," Population and Development Review, The Population Council, Inc., vol. 45(4), pages 885-922, December.
    4. van Dalen, H.P. & Henkens, K., 2008. "Emigration Intentions : Mere Words or True Plans? Explaining International Migration Intentions and Behavior," Discussion Paper 2008-60, Tilburg University, Center for Economic Research.
    5. Gibson, John & McKenzie, David, 2011. "The microeconomic determinants of emigration and return migration of the best and brightest: Evidence from the Pacific," Journal of Development Economics, Elsevier, vol. 95(1), pages 18-29, May.
    6. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    7. Axel Heitmueller, 2005. "Unemployment benefits, risk aversion, and migration incentives," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 93-112, January.
    8. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    9. Assaf Razin & Jackline Wahba, 2015. "Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 369-402, April.
    10. Wido Geis & Silke Uebelmesser & Martin Werding, 2013. "How do Migrants Choose Their Destination Country? An Analysis of Institutional Determinants," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 825-840, November.
    11. Alon Cohen & Assaf Razin, 2008. "The Skill Composition of Immigrants and the Generosity of the Welfare State: Free vs. Policy-Controlled Migration," NBER Working Papers 14459, National Bureau of Economic Research, Inc.
    12. Hendrik P. van Dalen & Kène Henkens, 2013. "Explaining emigration intentions and behaviour in the Netherlands, 2005-10," Population Studies, Taylor & Francis Journals, vol. 67(2), pages 225-241, July.
    13. Peter Ester & Ruud Muffels & Joop Schippers & Ton Wilthagen (ed.), 2008. "Innovating European Labour Markets," Books, Edward Elgar Publishing, number 13212.
    14. Stefanie Kley, 2017. "Facilitators and constraints at each stage of the migration decision process," Population Studies, Taylor & Francis Journals, vol. 71(0), pages 35-49, October.
    15. Tillema, Taede & van Wee, Bert & Ettema, Dick, 2010. "The influence of (toll-related) travel costs in residential location decisions of households: A stated choice approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(10), pages 785-796, December.
    16. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 684-689, August.
    17. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    18. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
    19. Jacob M. Montgomery & Brendan Nyhan & Michelle Torres, 2018. "How Conditioning on Posttreatment Variables Can Ruin Your Experiment and What to Do about It," American Journal of Political Science, John Wiley & Sons, vol. 62(3), pages 760-775, July.
    20. Tharenou, Phyllis, 2008. "Disruptive decisions to leave home: Gender and family differences in expatriation choices," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(2), pages 183-200, March.
    21. van Dalen, H.P. & Henkens, C.J.I.M., 2013. "Explaining emigration intentions and behaviour in the Netherlands 2005-2010," Other publications TiSEM 511bab2c-f350-423e-9843-e, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shenghua Xie & Juan Chen & Veli-Matti Ritakallio & Xiangming Leng, 2021. "Welfare migration or migrant selection? Social insurance participation and rural migrants’ intentions to seek permanent urban settlement in China," Urban Studies, Urban Studies Journal Limited, vol. 58(10), pages 1983-2003, August.
    2. Bettin, Giulia & Sacchi, Agnese, 2020. "Health spending in Italy: The impact of immigrants," European Journal of Political Economy, Elsevier, vol. 65(C).
    3. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    4. Corneo, Giacomo & Neidhöfer, Guido, 2021. "Income redistribution and self-selection of immigrants," Journal of Public Economics, Elsevier, vol. 198(C).
    5. Łukasz Byra, 2023. "Two possible reasons behind the reluctance of low-skilled workers to migrate to generous welfare states," Working Papers 2023-24, Faculty of Economic Sciences, University of Warsaw.
    6. Di Iasio, Valentina & Wahba, Jackline, 2024. "The Determinants of Refugees’ Destinations: Where do refugees locate within the EU?," World Development, Elsevier, vol. 177(C).
    7. 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.
    8. Li Hao & Daniel Houser & Lei Mao & Marie Claire Villeval, 2014. "A Field Study of Chinese Migrant Workers’ Attitudes toward Risks, Strategic Uncertainty, and Competitiveness," Working Papers 1418, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    9. Marek Gora & Anna Ruzik-Sierdzinska, 2020. "Migration with pension reform expectations," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 203-219.
    10. Peter Huber & Klaus Nowotny, 2020. "Risk aversion and the willingness to migrate in 30 transition countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1463-1498, October.
    11. Martin Kahanec & Martin Guzi, 2023. "Welfare Migration," Discussion Papers 65, Central European Labour Studies Institute (CELSI).
    12. Alberto Alesina & Elie Murard & Hillel Rapoport, 2019. "Immigration and Preferences for Redistribution in Europe," Working Papers 2019-15, CEPII research center.
    13. Björn NILSSON, 2019. "Education and migration: insights for policymakers," Working Paper 23ca9c54-061a-4d60-967c-f, Agence française de développement.
    14. Arnaud Chevalier & Benjamin Elsner & Andreas Lichter & Nico Pestel, 2018. "Immigrant Voters, Taxation and the Size of the Welfare State," SOEPpapers on Multidisciplinary Panel Data Research 994, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    16. Corrado Giulietti & Martin Guzi & Martin Kahanec & Klaus F. Zimmermann, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(1), pages 24-38, March.
    17. Shamsuddin, Mrittika & Katsaiti, Marina Selini & El Anshasy, Amany A., 2022. "Income rank and income concerns: What correlates with international migration intentions?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 490-505.
    18. Otrachshenko, Vladimir & Popova, Olga, 2014. "Life (dis)satisfaction and the intention to migrate: Evidence from Central and Eastern Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 40-49.
    19. Vincenzo Bove & Georgios Efthyvoulou & Harry Pickard, 2023. "Government ideology and international migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(1), pages 107-138, January.
    20. Giuranno Michele G. & Biswas Rongili, 2019. "Internal Migration and Public Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(4), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:poprpr:v:41:y:2022:i:2:d:10.1007_s11113-021-09669-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.