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

83 Pages Posted: 8 Aug 2019 Last revised: 8 Nov 2019

See all articles by Andrea FM Martinangeli

Andrea FM Martinangeli

Max Planck Institute for Tax Law and Public Finance

Lisa Windsteiger

Max Planck Institute for Tax Law and Public Finance

Date Written: August 7, 2019

Abstract

In a survey experiment conducted in Germany, we investigate how preferences over both the financing and the provision of redistributive policies are a affected by poverty and immigration. We find that while information about poverty has no detectable impact on the progressivity of the respondents' demanded income tax schedule, information about immigration has a sizeable and significant negative impact for middle income respondents. The opposite holds for low income earners, such that effects cancel out at the aggregate level. On the provision side, middle income respondents see public education as a viable response to both poverty and immigration, while low income respondents desire less public expenditure on education due to immigration. These heterogeneities suggest that understanding the relationship between immigration, poverty and demand for redistribution and addressing its pitfalls requires in-depth investigations by population segment.

Keywords: immigration, poverty, redistribution, survey experiment

JEL Classification: D31, D63, H53, J15

Suggested Citation

Martinangeli, Andrea and Windsteiger, Lisa, Immigration vs. Poverty: Causal Impact on Demand for Redistribution in a Survey Experiment (August 7, 2019). Working Paper of the Max Planck Institute for Tax Law and Public Finance No. 2019-13. Available at SSRN: https://ssrn.com/abstract=3434292 or http://dx.doi.org/10.2139/ssrn.3434292

Andrea Martinangeli (Contact Author)

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

Lisa Windsteiger

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

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