Do multiculturalism policies erode the welfare state? An empirical analysis

Abstract

This chapter introduces a new framework for testing the recognition/redistribution hypothesis. It develops an index of twenty-three different types of MCPs that have been adopted for three different types of minority groups (immigrants, national minorities, and indigenous peoples). Western countries are then categorized in terms of their level of MCPs. Whether countries with higher levels of MCPs have faced an erosion of the welfare state as compared to countries with lower levels of MCPs is tested. It is shown that there is no negative correlation between the strength of a country's commitment to MCPs and its ability to sustain welfare spending or economic redistribution. The chapter also examines the heterogeneity/redistribution hypothesis, and shows that this too is overstated. In general, the size of immigrant groups, national minorities, and indigenous peoples in Western countries does not affect a country's ability to sustain its welfare commitments, although a rapid change in the size of immigrant groups does seem to have an effect. Yet even here, the authors of this chapter argue, there are hints that adopting MCPs can help to mitigate whatever negative effect a rapidly increasing immigrant population may have.

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