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

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

No 269, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

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.

JEL-codes: D64 H7 I3 J61 (search for similar items in EconPapers)
Pages: 0 pages
Date: 2011
New Economics Papers: this item is included in nep-mig
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Citations: View citations in EconPapers (2)

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Working Paper: Welfare spending and ethnic heterogeneity: evidence from a massive immigration wave (2011)
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