Welfare spending and ethnic heterogeneity: evidence from a massive immigration wave

Jordi Jofre-Monseny (), Pilar Sorribas-Navarro () and Javier Vázquez-Grenno ()
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Jordi Jofre-Monseny: Universitat de Barcelona & IEB
Pilar Sorribas-Navarro: Universitat de Barcelona & IEB
Javier Vázquez-Grenno: Universitat de Barcelona & IEB
Authors registered in the RePEc Author Service: Javier Vázquez Grenno ()

No 2011/34, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: The aim of this paper is to examine the relationship between ethnic heterogeneity and redistribution, by using the recent and massive arrival of immigrants in Spain. Specifically, we focus on the effect of changes in immigrant density, recorded between 1998 and 2006, on contemporaneous changes in municipal welfare spending. We instrument for immigrant density using established settlement patterns per country of origin so as to assign predicted flows of immigrants to municipalities. We find that welfare spending increased less in those municipalities that recorded the largest increases in immigrant density. We also provide evidence of a positive relationship between immigrant density and the vote share accruing to right-wing parties. Hence, our results are consistent with theories that predict a negative relationship between ethnic heterogeneity and redistribution.

Keywords: Welfare spending; immigration; ethnic heterogeneity; redistribution (search for similar items in EconPapers)
JEL-codes: D64 H7 I3 J61 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2011
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Welfare spending and ethnic heterogeneity: Evidence from a massive immigration wave (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2011-34

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