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Preferences for Redistribution and International Migration

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  • Ilpo Kauppinen
  • Panu Poutvaara

Abstract

The Tiebout hypothesis suggests that people who migrate from more to less redistributive countries are more negative towards redistribution than non-migrants. However, differences between migrants’ and non-migrants’ redistributive preferences might also reflect self-interest. We present a model in-corporating these competing mechanisms and test it using survey data on Danish emigrants and non-migrants. We find strong support for the Tiebout hypothesis among men, while women’s preference patterns are opposite to what the hypothesis predicts. Even though emigrants neither pay taxes nor receive benefits in their country of origin, they tend to support policies that would be beneficial for people like themselves.

Suggested Citation

  • Ilpo Kauppinen & Panu Poutvaara, 2019. "Preferences for Redistribution and International Migration," ifo Working Paper Series 283, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_283
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    1. Zhan, Crystal & Deole, Sumit, 2022. "Economic Preferences and the Self-selection of Immigrants," GLO Discussion Paper Series 1156, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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