WIFO Research Seminar, Österreichisches Institut für Wirtschaftsforschung, Wien, 13.02.2020
Online seit: 24.01.2020 0:00
How do welfare levels influence migrants' location choice? The welfare magnet hypothesis claims that migrants will be disproportionately
drawn to high-welfare locations. However, the hypothesis has proven difficult to verify empirically because of the multiplicity
of factors influencing mobility choices. Due to a policy of initial random dispersion of refugees and stark regional differences
in welfare levels in Austria, it is possible to causally identify the effect of welfare on location choice. In some Austrian
Länder (federal states) welfare levels for refugees differ depending on a person's protection status, while in others, they
do not. On top, there have been three reforms of the welfare system in specific states, which led to reductions in welfare
levels of 30 to 60 percent, generating variation over time. The results show strong evidence for welfare levels having an
effect on location choice. However, for understanding overall mobility patterns of refugees the importance of state specific
support structures cannot be overstated.
The rising demand for long-time care will lead to higher costs for the public sector. This year's conference is therefore
devoted to the discussion of advantages and disadvantages of the different care financing models and whether there are differences
in the services offered. Lessons of German care insurance as well as of the Norwegian tax-financed care system for Austria
will be discussed by international experts. – Lectures: Ulrike Famira-Mühlberger (WIFO), Heinz Rothgang (University of Bremen),
Tor Iversen (University of Oslo), Adelina Comas-Herrera (London School of Economics)
