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Author:Gerdes, C.
Title:The impact of immigration on the size of government: empirical evidence from Danish municipalities
Journal:Scandinavian Journal of Economics
2011 : VOL. 113:1 p. 74-92
Index terms:public goods
welfare state
Denmark
Scandinavia
Nordic countries
microeconomics
public sector
Language:eng
Abstract:Many studies have reported a negative relationship between ethnic heterogeneity and the size of the public sector. One problem with this literature is that ethnic composition is hardly exogenous, which obstructs attempts to reveal causal mechanisms. This study examines the effect of changes in ethnic heterogeneity in Danish municipalities in 1995-2001, a period marked by an unprecedented influx of refugees. A state-sponsored placement policy restricted their choice of residence and required local governments to accept them as citizens. The analysis of the effect of this influx has not unveiled any support for the claim of a decline in public sector size.
SCIMA record nr: 273821
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