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Does Migration Threaten the Sustainability of European Welfare States? WWWforEurope Working Paper No. 21

Author

Listed:
  • Peter Huber
  • Doris Oberdabernig

    (WIFO)

Abstract

We investigate the relative contributions of migrant and native households to welfare states. Using two step Oaxaca-Blinder decompositions that control for selection into benefit take-up, we are able to identify the individual variables contributing to differences in welfare receipt by native and migrant households. We find that most of the differences are explained by observable characteristics such as size of the household as well as age and education of its head and income in some countries. In contrast, significantly lower net contributions of migrant households to the state budget persist in many countries even after controlling for observable factors. The reasons for this are primarily lower tax payments of migrant households. Selective migration and sound integration policies as well as policies avoiding marginalisation of migrants in informal labour markets are therefore the most effective means to avoid fiscal burdens of migration.

Suggested Citation

  • Peter Huber & Doris Oberdabernig, 2013. "Does Migration Threaten the Sustainability of European Welfare States? WWWforEurope Working Paper No. 21," WIFO Studies, WIFO, number 46882.
    • Handle: RePEc:wfo:wstudy:46882
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    References listed on IDEAS

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    Cited by:

    1. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791.
    2. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller-Altzinger & Teresa Weiss, 2014. "Moving Towards a New Growth Model. WWWforEurope Deliverable No. 3," WIFO Studies, WIFO, number 47247.
    3. Peter Huber & Marian Fink & Thomas Horvath, 2020. "Data Sources on Migrants' Labour Market and Education Integration in Austria," WIFO Working Papers 613, WIFO.
    4. Burgos-Mascarell, Andrea & Ribeiro-Soriano, Domingo & Martínez-López, Miguel, 2016. "Dystopia deconstructed: Applying the triple helix model to a failed utopia," Journal of Business Research, Elsevier, vol. 69(5), pages 1845-1850.
    5. Karl Aiginger & Marcus Scheiblecker, 2016. "Österreich 2025 – Eine Agenda für mehr Dynamik, sozialen Ausgleich und ökologische Nachhaltigkeit. Fortschrittsbericht," WIFO Studies, WIFO, number 58885.

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