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Migration-Induced Redistribution with and without Migrants' Voting

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We are motivated by the unique migration experience of Israel, of a supply-side shock triggering skilled immigration and the concurrent decline in welfare-state redistribution. This paper develops a model that can provide an explanation for the mechanism through which a supply-side shock, triggering high-skill migration, can also reshape the political-economy balance and the redistributive policies. The paper highlights the differences in the political-economy-based redistribution policies between the cases in which migrants participate in the electoral system and the case in which they do not. When migrants are allowed to vote, and take advantage of this right, then, all income groups gain (in their net income), except the low-skilled immigrants, who lose. However, when migrants are not allowed to vote, or choose not to participate in elections, all income groups gain, except the skilled migrants who lose.
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Document Type: Research Article

Publication date: 01 March 2018

This article was made available online on 12 December 2017 as a Fast Track article with title: "Migration-Induced Redistribution with and without Migrants’ Voting".

More about this publication?
  • As one of the world's oldest professional journals in public finance, founded in 1884, FinanzArchiv (FA) publishes original work from all fields of public economics which are of interest to an international readership, e.g. taxation, public debt, public goods, public choice, federalism, market failure, social policy, and the welfare state. Special emphasis is on high-quality theoretical and empirical papers on current policy issues.

    FA is a peer-reviewed journal commited to a prompt turnaround of submissions.

    FA is listed in the Social Science Citation Index (SSCI), in Current Contents/Social and Behavioral Sciences, in Econ Lit, in the Journal of Economic Literature, in IDEAS and RePEc and in the International Bibliography of the Social Sciences.

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