Labor Market Choices of Migrants and Redistributive Policies

Abstract

We experimentally study economic migrants’ willingness to take up work and integrate into society, and, in turn, destination country citizens’ willingness to allow economic migrants to pursue formal work and integrate into society and its social security and welfare system. We find clear evidence for a reciprocal relationship between the individuals in these roles. The labor market participation of economic migrants co-moves with destination countries’ openness to welcoming them. We conclude that supporting economic migrants in early labor market attachment is crucial to support a mutually beneficial co-existence in a society.

Keywords: migration, redistributive policies, discrimination, labor market

JEL Classification: I38, J61, O15, C91, C72