Immigration and Income Redistribution – A Political Economy Analysis

Public Choice, 131/1-2, 101-116, 2007

Posted: 27 Sep 2019

See all articles by Karin Mayr-Dorn

Karin Mayr-Dorn

Johannes Kepler University of Linz

Date Written: 2007

Abstract

This paper examines the effect of immigration on the extent of income redistribution via majority voting on the income tax. The tax outcome depends on the size of the native majority and the initial amount of redistribution in the economy, which in turn determines the skill composition of immigrants. As a main result, we derive conditions for multiple tax equilibria: if the native majority of either skilled or unskilled is not too strong and immigrants are allowed to vote, both a high-tax and a low-tax outcome is possible. In a referendum, natives will then vote against immigrant voting. At best, natives are indifferent towards immigrant voting.

Keywords: political economy, immigration, income redistribution

JEL Classification: F22, H73, D72

Suggested Citation

Mayr-Dorn, Karin, Immigration and Income Redistribution – A Political Economy Analysis (2007). Public Choice, 131/1-2, 101-116, 2007, Available at SSRN: https://ssrn.com/abstract=3455896

Karin Mayr-Dorn (Contact Author)

Johannes Kepler University of Linz ( email )

Altenbergerstrasse 69
Linz, Upper Austria 4040
Austria

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