Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 599: Does immigration affect welfare state generosity? Quasi-experimental evidence
Niklas Jakobsson () and Sven Tengstam ()
Additional contact information
Niklas Jakobsson: Norwegian Social Research (NOVA), Postal: P.O. Box 3223 Elisenberg, 0208 Oslo, Norway
Sven Tengstam: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Abstract: 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
13 pages, June 27, 2014
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