Skip to main content
Article thumbnail
Location of Repository

Immigration and majority voting on income redistribution - is there a case for opposition from natives?

By Karin Mayr

Abstract

This paper examines the effect of immigration on the level of income redistribution via majority voting on the income tax. Immigrants have an impact on redistributive outcomes by adding to the size of different interest groups and by thus changing the composition of the voting population. The tax outcome depends on the skill composition of natives 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 skill composition of natives is not too homogeneous, both a high tax and a low tax outcome is possible if immigrants are allowed to vote. We find that natives will oppose immigrant voting if they are not homogeneous enough in their skills. In that case, immigrants votes could overthrow their majority and change the tax rate that is utility-maximising for natives. At best, natives are indifferent towards immigrant voting. As far as immigration itself is concerned, a native unskilled majority will gain from it and therefore vote for it, if immigrants are relatively more skilled than natives; a native skilled majority will be indifferent

Topics: HG, HB
Publisher: University of Warwick. Centre for the Study of Globalisation and Regionalisation
Year: 2003
OAI identifier: oai:wrap.warwick.ac.uk:2003

Suggested articles

Citations

  1. (1996). A political economic analysis of labor migration and income redistribution’, doi
  2. (1971). An exploration in the theory of optimal income taxation’, doi
  3. (1987). Assistance to the poor in a federal system’, doi
  4. (1991). Community composition and the provision of local public goods’, doi
  5. (2000). Discourses of exclusion: a European comparative study’, Speech at the Opening of the EU Observatorium, Hofburg Vienna, http://www.oeaw.ac.at/wittgenstein/racism/EuObservatoriumkurz.htm as of
  6. (1999). Do immigrants displace young native workers: the Austrian experience’, doi
  7. (1997). Economic Survey of the United States 1997,P a r i s . doi
  8. (1997). Employment effects of immigration to Germany: an analysis based on local labor markets’, The Review of Economics and Statistics. doi
  9. (2002). EU enlargement and the future of the welfare state’, doi
  10. (2001). Immigrant inflows, native outflows and the local labor market impacts of higher immigration’, doi
  11. (1996). Immigration and the earnings of young native workers’, doi
  12. (1991). Immigration, international trade and the wages of native workers’, in: Immigration, Trade and Labor, edited by J.M. Abowd
  13. (1991). Income redistribution in a common labour market’,
  14. (1991). Labor market adjustment to increased immigration’, in: Immigration, Trade and Labor,e d i t e db yJ . M .A b o w da n dR .
  15. (2001). Labor market institutions and the impact of immigrants on natives: evidence from doi
  16. Maintaining prosperity in an ageing society, doi
  17. (1999). Migration and pension with international capital mobility’, doi
  18. (1998). Migration and pensions’, doi
  19. (1994). Native wage impacts of foreign labour: a random effects panel analysis’, doi
  20. (1995). Public Economics, doi
  21. Sadka (1999a), ’Unskilled migration: a burden or a boon for the welfare state’, NBER Working Paper 7013. doi
  22. (1996). Searching for the effect of immigration on the labor market’, NBER Working Paper 5454.
  23. (1982). Self-selection and Pareto efficient taxation’, doi
  24. (1998). Social insurance, majority voting and labor mobility’, doi
  25. (2001). Social security and migration with endogenous skill upgrading’, doi
  26. (1998). Sources of inefficiency in a representative democracy: a dynamic analysis’,
  27. (1997). Tax burden and migration: a political economy perspective’, Fiscal Affairs Department, doi
  28. (1999). The economic analysis of immigration’, doi
  29. (1994). The economics of immigration’, doi
  30. (1991). The effects of immigration on the labor market outcomes of lessskilled natives’, in: Immigration, Trade and Labor, edited by J.M. Abowd doi
  31. (1992). The impact of the 1962 repatriates from Algeria on the French labor market’, doi
  32. (1990). The impact of the Mariel boatlift on the Miami labor market’, doi
  33. (2003). The local labour market effects of immigration in the UK’, Home Office Online Report 06/03, http://www.homeoffice.gov.uk/rds/pdfs2/rdsolr0603.pdf as of April 9,
  34. Trends in international migration,P a r i s . doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.