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Ethnic Diversity and Preferences for Redistribution
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Institute for Housing and Urban Research. Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
IFN.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2011 (English)Report (Other academic)
Abstract [en]

In recent decades, the immigration of workers and refugees to Europe has increased substantially, and the composition of the population in many countries has consequently become much more heterogeneous in terms of ethnic background. If people exhibit in-group bias in the sense of being more altruistic to one's own kind, such increased heterogeneity will lead to reduced support for redistribution among natives. This paper exploits a nationwide program placing refugees in municipalities throughout Sweden during the period 1985 - 94 to isolate exogenous variation in immigrant shares. We match data on refugee placement to panel survey data on inhabitants of the receiving municipalities to estimate the causal effects of increased immigrant shares on preferences for redistribution. The results show that a larger immigrant population leads to less support for redistribution in the form of preferred social bene t levels. This reduction in support is especially pronounced for respondents with high income and wealth. We also establish that OLS estimators that do not properly deal with endogeneity problems - as in earlier studies - are likely to yield positively biased (i.e., less negative) eects of ethnic heterogeneity on preferences for redistribution.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University , 2011. , p. 42
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2011:1
Keywords [en]
Income redistribution, ethnic heterogeneity, immigration
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-140797OAI: oai:DiVA.org:uu-140797DiVA, id: diva2:384408
Available from: 2011-01-12 Created: 2011-01-10 Last updated: 2016-04-27Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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