Does immigration affect welfare state generosity? Quasi-experimental evidence
Niklas Jakobsson () and
Sven Tengstam ()
No 599, Working Papers in Economics from University of Gothenburg, Department of Economics
This note studies the impact of immigration on welfare state generosity in 12 Western European countries. In estimations not coping with the possible endogeneity problem, there are indications of a negative relationship between immigration and welfare state generosity. However, when the distance to the Balkan wars are used as a source of exogenous variation in the immigrant share, as to overcome potential endogeneity in mobility across countries, our findings suggest that an increase in the immigrant share does not decrease welfare state generosity.
Keywords: benefit generosity; immigration; social spending; welfare benefit (search for similar items in EconPapers)
JEL-codes: F22 H53 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-mig
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