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Self-Selection and Earnings of Emigrants from a Welfare State

Author

Listed:
  • Poutvaara, Panu

    (University of Munich)

  • Munk, Martin D.

    (Aalborg University)

  • Junge, Martin

Abstract

Following a seminal contribution by Borjas (1987), a large literature has analyzed how income distribution and redistribution are related to immigration to various rich countries. In this paper, we take a look at the other side of the coin. We analyze emigration from Denmark, which is one of the richest and most redistributive European Welfare States. Using comprehensive register data on full population and a unique new representative survey, we analyze whether Danes with relatively high earnings ability favor countries with more unequal income distribution and lower taxes, like the United States.

Suggested Citation

  • Poutvaara, Panu & Munk, Martin D. & Junge, Martin, 2009. "Self-Selection and Earnings of Emigrants from a Welfare State," IZA Discussion Papers 4144, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4144
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    References listed on IDEAS

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    1. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    2. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
    3. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    4. George J. Borjas & Bernt Bratsberg, 2021. "Who Leaves? The Outmigration Of The Foreign-Born," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 5, pages 93-104, World Scientific Publishing Co. Pte. Ltd..
    5. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
    6. Jukka Pirttilä, 2004. "Is International Labour Mobility a Threat to the Welfare State? Evidence from Finland in the 1990s," Finnish Economic Papers, Finnish Economic Association, vol. 17(1), pages 18-34, Spring.
    7. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
    8. repec:bla:scandj:v:93:y:1991:i:3:p:363-75 is not listed on IDEAS
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    Cited by:

    1. 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.
    2. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute of Labor Economics (IZA).
    3. 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.

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    More about this item

    Keywords

    migration; emigration; redistribution; brain drain; education;
    All these keywords.

    JEL classification:

    • 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
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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