The New Liberal Dilemma predicts that European universal welfare states lose support among natives due to large immigration numbers. This article contributes to the debate regarding the validity of the argument posited by the New Liberal Dilemma by examining the contradictory combination of support for a popular welfare state reform, Universal Basic Income (UBI), and conditionality for immigrants’ access to the welfare state in 20 European countries.
Contradictory welfare conditioning: Differing welfare support for natives versus immigrants
Article in Review of International Political Economy
German Economic Institute (IW)
The New Liberal Dilemma predicts that European universal welfare states lose support among natives due to large immigration numbers. This article contributes to the debate regarding the validity of the argument posited by the New Liberal Dilemma by examining the contradictory combination of support for a popular welfare state reform, Universal Basic Income (UBI), and conditionality for immigrants’ access to the welfare state in 20 European countries.
Even though UBI is unconditional, two thirds of UBI supporters want to impose significant conditions on immigrants’ access to the welfare state and thus exhibit contradictory and chauvinistic welfare state preferences. UBI supporters consist of different groups of respondents that are chauvinist. Nativists hold strong anti-immigration attitudes and want to exclude immigrants entirely from welfare benefits, while reciprocity chauvinists are willing to grant immigrants access to the welfare state once immigrants prove themselves to be deserving of benefits by paying taxes for at least a year. In contrast to the welfare magnet hypothesis, inconsistent and chauvinist preferences among UBI supporters are least common in rich European countries with large welfare states. On the macro-level, our findings are independent of countries’ engagement with communism and the share of foreign-born people.
Matthias Diermeier / Judith Niehues / Joel Reinecke: Contradictory welfare conditioning—differing welfare support for natives versus immigrants
Article in Review of International Political Economy
German Economic Institute (IW)
A Comparison of Public Revenues Across the Federal States
To ensure equivalent living conditions, the federal government influences the revenues of the states and municipalities. Under the fiscal equalization system, financially weak states receive surpluses in the distribution of sales tax revenues, while financially strong states must accept shortfalls.
IW
Reform of Personal Income Tax
Reforming personal income tax has been on the political agenda for years. Although bracket creep has largely been offset over the past ten years, the income tax schedule itself has not been structurally reformed.
IW