Trading off Welfare and Immigration in Europe
Series
NHH Discussion Papers
Type
discussion paper
Date Issued
2015-10-01
Author(s)
Abstract
In this paper, we explore the trade-off Europe faces when choosing between immigration from poor countries and welfare spending. Using data from the European Social Survey on sixteen countries from 2002-2012, we document that voter preferences shifted in favor of redistribution but polarized over low-skill immigration. Notably, there is a sharp increase in the share of individuals supporting the welfare state but heavily opposing immigration. In order to provide an economic explanation for these phenomena, we present a model where support for both immigration and redistributive policies are potentially motivated by altruism. Using this model, we show how rising unemployment rates, shares of foreign-born citizens and aggregate education can explain observed shifts in policy preferences.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Quantitative Economic Methods
Number
22/2015
Pages
66
Subject(s)
Division(s)
Eprints ID
249855
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Name
Hansen-Legge_DiscussionPaper_22-2015.pdf
Size
1.82 MB
Format
Adobe PDF
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