Working Paper: CEPR ID: DP14211
Authors: Alberto F. Alesina; Elie Murard; Hillel Rapoport
Abstract: We examine the relationship between immigration and preferences for redistribution in Europe using a newly assembled data set of immigrant stocks for 140 regions in 16 Western European countries. Exploiting within-country variations in the share of immigrants at the regional level, we find that native respondents display lower support for redistribution when the share of immigrants in their residence region is higher. This negative association is driven by regions of countries with relatively large Welfare States and by respondents at the center or at the right of the political spectrum. The effects are also stronger when immigrants originate from Middle-Eastern or Eastern European countries, are less skilled than natives, and experience more residential segregation. These results are unlikely to be driven by immigrants' endogenous location choices, that is, by welfare magnet effects or by immigrants' sorting into regions with better economic opportunities. They are also robust to instrumenting immigration with a standard shift-share approach or to controlling for regional growth prospects.
Keywords: Income Redistribution; Population Heterogeneity; Welfare Systems; Immigration
JEL Codes: D31; D64; I3; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| share of immigrants in a region (J61) | native support for redistribution (D39) |
| share of immigrants from Middle Eastern or Eastern European countries (J69) | native support for redistribution (D39) |
| less skilled immigrants (K37) | native support for redistribution (D39) |
| higher levels of residential segregation (R23) | native support for redistribution (D39) |
| large welfare states (P16) | negative impact on support for redistribution from immigrants (F66) |
| politically centrist or right-leaning respondents (D72) | lower support for redistribution as share of immigrants increases (J69) |
| regional growth prospects (R11) | native support for redistribution (D39) |