Trading Off Welfare and Immigration in Europe.

Abstract

In this paper, we explore the trade-off Europe faces when choosing between immigration from poor countries and welfare spending. Using data from the European Social Survey on sixteen countries from 2002-2012, we document that voter preferences shifted in favor of redistribution but polarized over low-skill immigration. Notably, there is a sharp increase in the share of individuals supporting the welfare state but heavily opposing immigration. In order to provide an economic explanation for these phenomena, we present a model where support for both immigration and redistributive policies are potentially motivated by altruism. Using this model, we show how rising unemployment rates, shares of foreign-born citizens and aggregate education can explain observed shifts in policy preferences.JEL Classification: F22, H2, O15

Drawbridges Down: Altruism and Immigration Preferences

“…Survey participants are asked whether they do charitable work at least once a month. As we show in Hansen and Legge (2015), such work is positively correlated with support for immigration. We find the same when using a question from the 2002 ESS that asks whether the survey participant donates money to a humanitarian organization.…”

Borders of Compassion: Immigration Preferences and Parochial Altruism

“…After all, many people do view policies increasing immigration as an act of charity (whether rightfully or not). In line with this argument, there is some evidence from self-reported surveys that altruistic people are generally more accepting of international human mobility (Dinesen et al, 2016; Hansen & Legge, 2016; Newman et al, 2013).…”