Immigration vs. Poverty: Causal Impact on Demand for Redistribution in a Survey Experiment

Abstract

We investigate how demand for both the financing and the provision of redistributive policies is affected by information about immigration and poverty. Information about immigration has a positive impact on desired tax progressivity among low-income respondents and a negative one among higher income earners. Information about poverty has no impact. On the provision side, middle- and high-income respondents increase desired public education expenditure in response to poverty, while low-income respondents reduce desired education spending in response to immigration. These heterogeneities are consistent with protectionist reactions to immigration and poverty.

Keywords: immigration, poverty, redistribution, survey experiment

JEL Classification: D31, D63, H53, J15