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Migration-Induced Redistribution with and without Migrant's Voting

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Listed:
  • Assaf Razin
  • Efraim Sadka

Abstract

We are motivated by the unique migration experience of Israel of a supply-side shock triggering skilled immigration and the concurrent decline in welfare-state redistribution. This paper develops a model, which can provide an explanation for the mechanism through which a supply-side shock triggering high-skill migration can also reshape the political-economy balance and the redistributive policies. The paper highlights the differences in the political-economy induced redistribution policies between the cases in which migrants participate in the electoral system and the case where they do not. When migrants are allowed to vote, and they take advantage of this right, then, following the shock, all income groups gain, except low skilled immigrants who lose. When migrants are not allowed to vote, or choose not to participate in elections, all income groups gain, except the skilled migrants who lose.

Suggested Citation

  • Assaf Razin & Efraim Sadka, 2017. "Migration-Induced Redistribution with and without Migrant's Voting," NBER Working Papers 23713, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23713
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    References listed on IDEAS

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    1. Razin, Assaf & Sadka, Efraim, 1993. "The Economy of Modern Israel," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226705897, December.
    2. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August.
    3. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    4. Momi Dahan, 2007. "Why Has the Labor-Force Participation Rate of Israeli Men Fallen?," Israel Economic Review, Bank of Israel, vol. 5(2), pages 95-128.
    5. Razin, Assaf & Sadka, Efraim & Suwankiri, Benjarong, 2011. "Migration and the Welfare State: Political-Economy Policy Formation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016109, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H0 - Public Economics - - General

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