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Low-income earners and/or those who face unemployment risk have been found to be less in favour of immigration in the UK, Switzerland, the US and other OECD countries

Disagreement over the immigration of low-income earners in a welfare state

Journal of Population Economics, no. 4 (2006): 691-702

Cited by: 8|Views2

Abstract

This paper studies natives’ economically motivated preferences over different levels of immigration of low-income earners. Immigration affects natives through both intra- and intergenerational redistribution programmes and in the labour market. Our analysis suggests, in a welfare state that looks after the poor and the aged, economic moti...More

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Introduction
  • This paper contributes to the theoretical literature on the economic impacts of immigration of low-income earners on the receiving welfare state.
  • The authors' aim is to shed some light on the causes of disagreement among natives over such immigration by examining their economically motivated preferences carefully.
  • A welfare state is represented by either intra- or intergenerational redistribution that is financed by taxation.
Highlights
  • This paper contributes to the theoretical literature on the economic impacts of immigration of low-income earners on the receiving welfare state
  • A welfare state is represented by either intra- or intergenerational redistribution that is financed by taxation
  • We find we can rank high-income earners, low-income earners and pensioners according to how much immigration they most prefer, and the order is not influenced by the values of model parameters within the assumed ranges
  • Low-income earners and/or those who face unemployment risk have been found to be less in favour of immigration in the UK (Dustmann and Preston 2004), Switzerland, the US (Citrin et al 1997; Scheve and Slaughter 2001) and other OECD countries (Bauer et al 2000)
  • Dustmann and Preston (2004: Tables 7 and 8) have found that welfare impacts of immigration are not very important for the formation of the attitude of white British persons with low education and/or low earnings. They have not found a significant contribution of labour-market concerns to anti-immigration attitude among unskilled workers either: their anti-immigration attitude seems mainly based on their racial prejudice
Results
  • Let them first look at the preference of pensioners.
  • Their consumption is subject to Eq 4.
  • Their savings decisions are already made in period t?\ with given f.
  • This in turn suggests the skill type of a pensioner does not matter to her/his preference.
Conclusion
  • The results of this paper (Propositions 2 and 5, in particular) have some empirical support.
  • Dustmann and Preston (2004: Tables 7 and 8) have found that welfare impacts of immigration are not very important for the formation of the attitude of white British persons with low education and/or low earnings.
  • They have not found a significant contribution of labour-market concerns to anti-immigration attitude among unskilled workers either: their anti-immigration attitude seems mainly based on their racial prejudice
Summary
  • Introduction:

    This paper contributes to the theoretical literature on the economic impacts of immigration of low-income earners on the receiving welfare state.
  • The authors' aim is to shed some light on the causes of disagreement among natives over such immigration by examining their economically motivated preferences carefully.
  • A welfare state is represented by either intra- or intergenerational redistribution that is financed by taxation.
  • Objectives:

    The authors' aim is to shed some light on the causes of disagreement among natives over such immigration by examining their economically motivated preferences carefully.
  • Results:

    Let them first look at the preference of pensioners.
  • Their consumption is subject to Eq 4.
  • Their savings decisions are already made in period t?\ with given f.
  • This in turn suggests the skill type of a pensioner does not matter to her/his preference.
  • Conclusion:

    The results of this paper (Propositions 2 and 5, in particular) have some empirical support.
  • Dustmann and Preston (2004: Tables 7 and 8) have found that welfare impacts of immigration are not very important for the formation of the attitude of white British persons with low education and/or low earnings.
  • They have not found a significant contribution of labour-market concerns to anti-immigration attitude among unskilled workers either: their anti-immigration attitude seems mainly based on their racial prejudice
Study subjects and analysis
implies: 5
which implies pensioners are affected by immigration through r. Equation 5 implies that low-skilled workers are also affected through r. Their current gross income does not change, for each of them receives b to top up w? so that yL = u

Reference
  • Bauer T, Lofstrom M, Zimmermann KF (2000) Immigration policy, assimilation of immigrants, and natives' sentiments towards immigrants: evidence from 12 OECD countries. Swed Econ
    Google ScholarFindings
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