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Does immigration affect welfare state generosity? Quasi-experimental evidence

Author

Listed:
  • Jakobsson, Niklas

    (Norwegian Social Research (NOVA))

  • Tengstam, Sven

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

This note studies the impact of immigration on welfare state generosity in 12 Western European countries. In estimations not coping with the possible endogeneity problem, there are indications of a negative relationship between immigration and welfare state generosity. However, when the distance to the Balkan wars are used as a source of exogenous variation in the immigrant share, as to overcome potential endogeneity in mobility across countries, our findings suggest that an increase in the immigrant share does not decrease welfare state generosity.

Suggested Citation

  • Jakobsson, Niklas & Tengstam, Sven, 2014. "Does immigration affect welfare state generosity? Quasi-experimental evidence," Working Papers in Economics 599, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0599
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    File URL: https://gupea.ub.gu.se/handle/2077/36248
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    References listed on IDEAS

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    More about this item

    Keywords

    benefit generosity; immigration; social spending; welfare benefit;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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