The Welfare State as Safety Net in Migration Preferences: Empirical Evidence from an Experiment Among Dutch Master Students

Abstract

AbstractThe welfare state can be perceived as a safety net which helps individuals adjust to situations of risk or transition. Starting from this idea of the welfare state as safety net, this study addresses whether and how welfare generosity may influence people’s willingness to migrate. In doing so, we distinguish between two potential mechanisms, innovatively focusing on welfare provisions in both the country of origin and destination. First, a generous welfare system in the country of origin may have a retaining impact, as individuals may be unwilling to migrate to countries offering less social protection. Second, generous welfare provisions in the country of destination may enable migration for individuals who are more intolerant of uncertainty and who otherwise would prefer to remain immobile. We test both mechanisms using stated preference data collected with a unique experimental design among over 300 Dutch Master students. Confirming the first mechanism, we indeed find that respondents report a lower willingness to migrate when evaluating hypothetical scenarios where the level of social protection was higher in the country of origin as compared with the country of destination. Furthermore, and in line with the second mechanism, individuals who are more intolerant of uncertainty generally report a lower willingness to migrate, yet their willingness to migrate increases for scenarios with higher levels of unemployment benefits. Our findings, thus, indeed suggest that welfare arrangements are mainly serving a safety net function and need to be understood in relative terms between the country of origin and destination.