Self-Selection and Earnings of Emigrants from a Welfare State
University of Helsinki - Department of Economics; Helsinki Center of Economic Research (HECER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)
Danish National Institute of Social Research (SFI)
University of Copenhagen - Department of Economics
IZA Discussion Paper No. 4144
Following a seminal contribution by Borjas (1987), a large literature has analyzed how income distribution and redistribution are related to immigration to various rich countries. In this paper, we take a look at the other side of the coin. We analyze emigration from Denmark, which is one of the richest and most redistributive European Welfare States. Using comprehensive register data on full population and a unique new representative survey, we analyze whether Danes with relatively high earnings ability favor countries with more unequal income distribution and lower taxes, like the United States.
Number of Pages in PDF File: 28
Keywords: migration, emigration, redistribution, brain drain, education
JEL Classification: F22, J61, H2working papers series
Date posted: April 28, 2009
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