Exit Options: How International Migration Opportunities Shape Economic Standing and Political Preferences

Abstract

This paper demonstrates that access to overseas employment reduces support for taxation and redistribution by bolstering individuals’ economic prospects. We present results from the first randomized controlled trial to result in international migration. Individuals who received the opportunity to migrate from India to the Middle East for work reported significantly higher wages, greater economic confidence, and more fiscally conservative attitudes. Moreover, the program had lasting effects even for those who decided not to migrate, which we link to improved exit options. Our results speak to longstanding debates about the impact of globalization on economic development and welfare state politics.

Keywords: Globalization, Migration, Economic Policy Preferences, Taxation and Redistribution, Field Experiments