Self-Selection and Earnings of Emigrants from a Welfare State

28 Pages Posted: 28 Apr 2009

See all articles by Panu Poutvaara

Panu Poutvaara

University of Helsinki - Department of Economics; Helsinki Center of Economic Research (HECER); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Martin Munk

Danish National Institute of Social Research (SFI)

Martin Junge

University of Copenhagen - Department of Economics

Abstract

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.

Keywords: migration, emigration, redistribution, brain drain, education

JEL Classification: F22, J61, H2

Suggested Citation

Poutvaara, Panu and Munk, Martin and Junge, Martin, Self-Selection and Earnings of Emigrants from a Welfare State. IZA Discussion Paper No. 4144. Available at SSRN: https://ssrn.com/abstract=1395251

Panu Poutvaara (Contact Author)

University of Helsinki - Department of Economics ( email )

P.O. Box 54
FIN-00014 Helsinki
Finland

HOME PAGE: http://www.valt.helsinki.fi/blogs/poutvaar/

Helsinki Center of Economic Research (HECER) ( email )

FI-00014 Helsinki
Finland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Martin Munk

Danish National Institute of Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052
Copenhagen K, DK-1052
Denmark

Martin Junge

University of Copenhagen - Department of Economics ( email )

Ă˜ster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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