DETERMINANTS OF ATTITUDES TOWARDS IMMIGRANTS IN DENMARK Thomas Hafner Advised by Professor Matthew Incantalupo Senior Thesis in Economics Haverford College April 2016 Hafner 2 TABLE OF CONTENTS I. ABSTRACT………………………………………………………………....3 II. INTRODUCTION…………………………………………………………..4 III. LITERATURE REVIEW…………………………………………………..7 IV. DATA……………………………………………………………………….12 V. METHODOLOGY………………………………………………………...17 VI. RESULTS…………………………………………………………………..18 VII. ANALYSIS…………………………………………………………………32 VIII. CONCLUSION…………………………………………………………….36 IX. REFERENCES…………………………………………………………….37 Hafner 3 I. ABSTRACT This paper explores how attitudes towards immigrants are shaped in Denmark. While other studies have looked at this issue in other countries, to my knowledge there has not been a study on this issue in Denmark. With a changing population and contested views on immigration, Denmark is an ideal country for looking at the effects of immigration. Using data from the European Social Survey (ESS), I attempt to examine what factors contribute the most to the formation of attitudes towards immigration in Denmark, and why these factors are important. The results show that education has a significant effect in shaping attitudes, but it is difficult to determine whether this is due to economic or cultural reasons. Other factors such as income, religion and gender also appear to affect attitudes towards immigration, but the results for these variables are not as conclusive as education. Hafner 4 II. INTRODUCTION For much of its history, Denmark has been a small country with a fairly homogeneous population. While the country is indeed relatively small, with a population of around 5.5 million, its population has become increasingly diverse, with more and more immigrants seeking citizenship in Denmark. Denmark is an attractive destination for immigrants for a number of reasons, including its welfare system and integration programs that seek to assimilate immigrants into Denmark as easily as possible. As of 2014, roughly 600,000 immigrants and their descendants live in Denmark, almost 11% of the total population (Denmark.dk). The number of immigrants in Denmark has increased since 2008, where there were close to 380,000 immigrants, compared to around 530,000 in 2015, as seen in Figure 1. " This high proportion of immigrants has led to some controversy among native-born citizens, with many arguing that immigrants take away jobs from native citizens and receive benefits that should be going towards the native population (Hedetoft 2006). Hafner 5 More specifically, since Denmark depends heavily on a welfare system, some native citizens worry that immigrants who are unable to assimilate well into the Danish system will place more of a burden on the average Danish taxpayer. Another worry is that immigrants will take away jobs from native Danes. With immigration showing no signs of lessening, especially in light of recent refugee crises, it is critical to understand how native Danes view and treat immigrants. This can help with assimilation, not only for the immigrants, but for natives as well. How can we look at these attitudes towards immigrants, and how can we explain how these attitudes are shaped? By learning more about these attitudes, we can better understand both the ideological and socioeconomic factors that affect native Danes and potentially provide more answers to why integration is sometimes difficult. In this paper, I look at what factors contribute to shaping attitudes towards immigrants. While there are likely a number of factors at play, skill level should have a significant impact on attitudes towards immigrants. The reasoning behind this is that if, for example, a large number of low-skilled immigrants are coming into Denmark, lowskilled native workers will likely have more negative attitudes towards immigrants, since these immigrants are taking more jobs away from native Danes. Another possibility is that higher-skilled workers may have a more negative view of immigrants, since they have a higher unemployment rate and therefore more of the higher-skilled workers’ tax money goes towards welfare for the immigrants. While these are two potential explanations for how attitudes are shaped towards immigration, there could potentially be other effects. One possibility is that people feel that immigrants are undermining their country’s culture, and therefore hold negative attitudes towards immigration. Another Hafner 6 possibility is that people have racial motivations, and may hold more negative discriminatory attitudes towards immigrants. There also might be an income effect; people who have higher incomes may feel more economically secure because immigrants generally tend to have lower incomes. While some factors may have a bigger contribution in shaping attitudes towards immigration, there is likely a mix of factors at play. In this paper, I will use data from the European Social Survey to explore what factors help shape attitudes towards immigrants. Hafner 7 III. LITERATURE REVIEW There is a sizable amount of previous research that deals with the issue of attitudes towards immigrants. However, it is first useful to understand how Denmark’s welfare system operates. Christiansen (1996) provides a basic overview of the Danish welfare system and lists some of its benefits and drawbacks. While this article does not go into too much detail, it gives readers a clear understanding of how the system works. Christiansen writes about how Denmark is a universal welfare state, meaning that the general public is responsible for paying taxes, which fund most welfare assistance. The main ideology behind the Danish welfare state is to ensure that all citizens have a minimum standard of living, and people who are unemployed or unable to earn a living will be provided for by the state via social security and unemployment benefits. In terms of how the welfare system actually operates, most of the burden falls on the general public; the average worker is taxed 47% of his or her income. Some of the money from this taxation goes towards unemployment benefits, with 78% of the labor force covered by these benefits. Relating this to the subject of immigrant unemployment, it seems that if immigrants struggle in finding jobs, some of the burden will fall on native Danish taxpayers, as immigrants can also qualify for unemployment benefits. It is clearly important for Denmark to find a way to lessen immigrant unemployment, not only for economic reasons, but also for social and political stability. Brochmann and Hagelund (2011) provide an overview of immigration in the Scandinavian countries and discuss some of the challenges that Scandinavian countries face with immigration. This includes the difficulties many immigrants encounter in finding a job and the controversy created when native citizens have to pay for the welfare Hafner 8 of the immigrants. The paper also talks about the different types of immigrants migrating to Scandinavia, including immigrants looking for labor and immigrants that are fleeing their native country due to a humanitarian crisis. Most of the immigrants were low-skilled workers. Immigration did not affect the Scandinavian countries much until the early 1970’s, at which point the countries began imposing restrictions on immigration. These were mainly because of the social issues immigration presented, including the creation of a lower class due to an inability to integrate into the new society. In a later section, Brochmann and Hagelund focus specifically on Denmark’s attitude and policies towards immigrants, including the Integration Act in 1998, which gave the government more control over the integration of immigrants. More specifically, the Act gave Danish municipalities power to disperse immigrants throughout Denmark, partly to deter ghettos from being formed. The act also brought forward introductory programs (Doobay and Jørgensen say that these include language and Danish society courses) designed to prepare immigrants for future educational or employment opportunities. For participation in these programs, immigrants were awarded an “introduction allowance” which, interestingly enough, was lower than unemployment benefits for native Danes. How has immigration affected the political system in Denmark? Harmon (2014) explores this by looking at how political outcomes are affected by the addition of new ethnic groups to the countries involved. More specifically, he examines how immigration affects Danish political outcomes between 1981-2001. Harmon asks whether increased immigrant presence contributes to the success of anti-immigrant, nationalist parties. Harmon’s main result confirms this above statement; namely that “immigration-driven increases in ethnic diversity have a causal impact on political outcomes.” It is clear that Hafner 9 the presence of immigrants may cause a negative backlash by native citizens. With this in mind, steps to ensure the proper integration of immigrants are necessary to avoid conflict between native citizens and immigrants. There are several papers that focus on how skill level of native workers affects their attitudes towards immigrants. These papers tend to use a “factor proportions” analysis model. Hainmueller and Hiscox (2010) write that the model “…derives the distributional effects in the native economy from the impact that immigration has on the relative supplies of factors of production.” This means that if there are lots of low-skilled immigrants coming into a country, low-skilled labor in that country will be affected not only through a loss of their jobs, but potential wage decreases as more low-skilled labor enters the country. Scheve and Slaughter (2001) use this model to explore the issue. They find that, in the United States, low-skilled workers have more negative attitudes towards immigration. They do not find any evidence that there is stronger antiimmigration sentiment as a result of skill level in areas with high immigration. To measure the skill level of workers, the authors use years of education completed as a proxy for skill level. This could potentially be problematic, however, as different levels of education may correspond to different attitudes towards immigration for reasons not related to labor market issues. For example, Hainmueller and Hiscox (2010) explain that a higher level of education may lead people to have a higher tolerance for different ethnic and racial groups other than their own, or may want to have more diversity in their country, thereby having more positive attitudes towards immigrants. Another issue is that papers such as Scheve and Slaughter’s (2001) ask respondents about their attitudes towards immigrants in general, not about their attitudes towards high or low-skilled Hafner 10 immigrants. This is problematic because people may have differing views about the skill level of immigrants coming into the country. Hainmueller and Hiscox (2007) and Hainmueller and Hiscox (2010) address this by looking at how people view high and low-skilled immigrants. In their 2007 paper, they use the country of origin of the immigrants and determine whether each country is a “rich” or “poor” country, and then ask respondents about their attitudes towards these countries. They find that highly educated people are more likely to favor immigrants. They also do not see any difference in the relationship between education and attitudes towards immigrants for respondents in the labor market and out of the labor market. This raises questions as to whether skill level of workers is a determining factor in anti-immigrant attitudes. In Hainmueller and Hiscox (2010), they conduct a survey where they ask respondents their attitudes towards high and low-skilled immigrants. They find that both high-skilled and low-skilled workers prefer high-skilled immigrants, for native workers both in the labor market and out of it. This result implies that labor-market concerns may not be a determining factor in people’s attitudes towards immigrants. The authors also investigate how income level affects an individual’s attitudes towards immigrants; the reasoning behind this is that richer natives will likely have more negative attitudes than poorer natives towards lowskilled immigrants, as they will have to spend more money paying for their public services. Hainmueller and Hiscox instead find that both high-skilled and low-skilled workers prefer high-skilled immigrants. This shows that traditional thinking about attitudes towards immigration may not be entirely accurate. Finally, knowledge about how immigrants affect the labor market in Denmark can prove useful in analyzing attitudes towards immigrants. Foged and Peri (2015) examine Hafner 11 the effect of immigrant workers on native workers’ wages. More specifically, they compare labor market outcomes of low-skilled natives and immigrants. Interestingly, they found that immigrants had positive effects on native workers’ wages; immigrants led native workers to seek more skill-intensive jobs, while the immigrant workers were more likely to take the manually intensive jobs. They did not find any evidence to imply that immigration increased the probability of unemployment for unskilled natives. This result suggests that, in Denmark, low-skilled workers should not have to worry about losing their jobs as a result of immigration. Hafner 12 IV. DATA The data in this study was obtained from the European Social Survey (ESS). This organization has conducted a survey of various European countries every two years since 2001. In the survey, they ask a number of questions relating to attitudes and patterns of behavior, and also various other questions about respondents’ backgrounds. To collect its data, the ESS randomly selects individuals ages 15 and over within private households in the country being surveyed. The minimum sample size each country aims for is 1500 respondents. In the 2014 survey, there were over 500 variables included. For this paper, I will be focusing on variables that look at the attitudes of Danish citizens towards immigrants. There is no variable in the data set that explicitly states the skill level of the individual surveyed, so to account for that, I will use the highest level of education reached as a substitute for skill level. This has been done in papers such as Scheve and Slaughter (2001) and intuitively makes sense, as the higher level of education someone reaches, the more likely they are to get a better job. Table 1 provides an overview of the variables included in the dataset, as well as what ESS round each variable is included in. Hafner 13 TABLE 1. List of variables Variable age attitude_culture Description Age of respondent Country’s cultural life enriched or undermined by immigrants (0 if cultural life undermined, 10 if enriched) Rounds 1-7 1-7 attitude_economy Immigration good or bad for Denmark’s economy? (0 if bad, 10 if good) 1-7 attitude_job Immigrants create new jobs or take away existing jobs (0 if take jobs away, 10 if create new jobs) 7 attitude_living Immigrants make country a better or worse place to live (0 if worse, 10 if better) 1-7 attitude_poor Allow few/many immigrants for poorer countries (1 if none, 4 if manay) 7 attitude_white Should immigrants be white? (0 if yes, 10 if no) 7 discriminated Member of a group discriminated against in Denmark (0 if not discriminated against, 1 if discriminated against) 1-7 education Highest level of education the respondent has reached (1 for less than lower secondary, 5 for a tertiary education) 1-7 equal Important that people be treated equally and have equal opportunities (1 if the respondent agrees, 6 if not at all) 7 feel_close Feel close to country (1 if very close, 4 if not close at all) 7 gender Gender of respondent (0 if female, 1 if male) 1-7 health income native Subjective general health (1 if very good, 5 if bad) Income level of respondent (shows income decile of respondent) Whether or not the respondent was born in Denmark (1 if yes, 2 if no) 1-7 1-7 1-7 religious How religious the respondent is (0 if not at all, 10 if very) 1-7 work Whether the respondent has done paid work in the last 7 days (0 if yes, 1 if no) 1-7 There are several variables included which measure attitudes towards immigration. attitude_culture shows whether the respondent think immigrants enrich or undermine Denmark’s culture, attitude_economy lists how the respondent feels immigration impacts the economy, attititude_job describes whether people think immigrants take away or create new jobs, attitude_living shows whether respondents think immigrants make the country a worse or better place to live, attitude_poor asks whether more or fewer immigrants should be allowed from poorer countries, and attitude_white lists whether respondents think immigrants should be white. equal is a Hafner 14 variable which shows how people think others should be treated. Other variables include discriminated and feel_close; discriminated shows if the respondent is part of a group that has been discriminated against, while feel_close shows how close the respondent feels to their country. For a variable that shows the skill level of the respondent, I am using the variable education, which shows the highest level of education completed for each respondent. The education levels are divided into five parts: less than secondary education, lower secondary education, upper secondary education, advanced vocational education, and tertiary education. Lower secondary education is generally completed by the time the respondent is 16-17, while upper secondary education is usually finished by the time the individual is 19. Advanced vocational education is designed to prepare students for employment and make their transition into the labor market easier. Tertiary education means that the respondent has at least completed a university degree. Table 2 shows the descriptive statistics for this data set. The mean of attitude_economy is 5.083 (on a 1-10 scale) indicating that respondents have mixed opinions on whether immigration is good or bad for Denmark’s economy. The results for attitude_job also show that people disagree on whether immigrants take away or create new jobs, with the mean indicating that slightly more people think immigrants create new jobs. attitude_living also appears to show that people have mixed opinions on whether immigrants make the country a better or worse place to live. Hafner 15 TABLE 2. Descriptive Statistics VARIABLE age attitude_culture attitude_economy attitude_job attitude_living attitude_poor attitude_white discriminated education equal feel_close gender health income native religious work OBSERVATIONS 10800 10565 10447 1461 10583 1477 1490 10762 10769 10622 1496 10832 10810 9226 10816 10774 10836 MEAN 48.233 5.988 5.083 5.424 5.988 2.624 8.600 0.040 3.379 2.245 1.360 0.498 1.916 6.591 1.062 4.181 0.587 STD. DEV. 18.253 2.401 2.300 1.950 2.401 0.788 2.307 0.197 1.221 1.181 0.562 0.500 0.909 2.688 0.242 2.623 0.492 MIN 15 0 0 0 0 1 0 0 1 1 1 0 1 1 1 0 0 MAX 102 10 10 10 10 4 10 1 5 6 4 1 5 10 2 10 1 Other variables not related to immigration include feel_close, discriminated, income, and work. The results for feel_close indicate that most people tend to feel close to Denmark, meaning that they are likely more patriotic. This could potentially result in this group wanting the population to remain relatively homogenous, meaning this group is more averse to immigration. discriminated is another interesting variable, as it shows whether the respondent is part of a group that has been discriminated against in Denmark. The results show that most people have not been discriminated against, but the people who have been discriminated against may empathize with immigrants, or may even be immigrants themselves. The variable for income shows the income level of the respondent; it is possible that people with higher incomes may have to pay more of their taxes to welfare, which could potentially be going towards immigrants unable to assimilate into the economy. This may result in more negative attitudes towards immigration for higher earners. Another variable, work, shows whether the respondent has done paid work in the last seven days. Individuals who have done paid work may Hafner 16 have more positive attitudes towards immigrants than people who have not done paid work, as the people who have not worked may feel that immigrants are taking jobs away from them. Finally, education is included in all seven rounds, and has a mean of 3.379, which shows that the average respondent has reached an upper secondary education. Hafner 17 V. METHODOLOGY The models used in this paper take an Ordinary Least Squares (OLS) form. The dependent variable is one of the variables measuring attitudes towards immigrants. For each attitude variable used, I run two regressions: the first with no interaction term, and the second with an interaction term between education and income included. The first regression takes the following form: Y = β0 + β1 education + β2 income + β3 pdwrk + β4 native + β5 discriminated + β6 female + β7 age + β8 religion + β9 equal + β10 essround + ε In this regression, Y is one of the attitudes variables (i.e. attitude_living, attitude_culture, etc.). ε is the error term. I also include a variable for the ESS round to control for potential changes over time. The second regression for each attitude variable includes an interaction term between education and income. This is because education likely has an effect on the amount of income people earn. The regression takes the following form: Y = β0 + β1 education + β2 income + β3 education * income + β4 pdwrk + β5 native + β6 discriminated + β7 female + β8 age + β9 religion + β10 equal + β11 essround + ε Again, Y is one of the attitudes variables, while ε is the error term. This second regression should better account for any potential interactions between variables. Hafner 18 VI. RESULTS Variables for all 7 Rounds I first look at regressions with attitudes variables that are included in all seven ESS rounds. The first regression uses attitude_living as the dependent variable, as shown in Table 3. Table 3. income education income * education worked native discriminated female age religion equal R2 Sample Size ** = 5% significance level *** = 1% significance level TABLE 3 (Attitude_living) Coefficients without Coefficients with interaction interaction .0521 *** .0295 (.0097) (.0241) .4569 *** .4132 *** (.0190) (.0467) n/a .0068 (.0066) -.0802 -.0790 (.0526) (.0526) -.4830 *** -.4850 *** (.0917) (.0917) -.3842 *** -.3846 *** (.1084) (.1084) .1517 *** .1510 *** (.0432) (.0432) -.0139 *** -.0141 *** (.0013) (.0014) .0218 *** .0219 *** (.0084) (.0084) .3826 *** .3824 *** (.0181) (.0181) 0.1625 0.1625 8945 8945 As seen earlier, attitude_living is a variable that shows whether or not the respondent thinks immigrants make Denmark a better or worse place to live. There are several significant results that appear. First, there is a slight but significant income effect; Hafner 19 as people reach a higher income bracket, their attitudes towards immigrants improve by .0521. The education effect here is large, with almost a half a point increase in attitude_living when reaching a higher education level. People who have worked during the last seven days tend to have a negative attitude toward immigrants, but this result is not significant. The coefficients for native, discriminated, and female are all significant; native is the largest, with a .4830 decrease in attitudes towards immigrants for people born in Denmark. Interestingly, members of a group who had been discriminated against were more likely to have a negative view of immigrants. Females have a slightly more positive view toward immigrants than males. Looking at the last three variables included, as age increases, the value of attitude_living decreases, while people who are more religious and want more equality for all tend to have more positive attitudes towards immigrants. Next, I run the same regression with an interaction term included between education and income to better account for any potential effects between the two variables. The results are comparable to the first regression; the same variables were all significant, with similar values for the coefficients. A graphical representation of how education and income affect attitude_living is shown in Figure 2. Hafner 20 Figure 2. 4 5 attitude_living 6 7 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education As seen in the figure, reaching a higher level of education has a significant effect on attitude_living. There is also an income effect, but this is relatively slight. This income effect also does not appear to change much when the respondent is at a higher level of education. The next regression uses attitude_economy as the dependent variable, which looks at how people think immigration affects the Danish economy. The results are shown in Table 4. income education income * education worked native discriminated female age religion equal R2 Sample Size ** = 5% significance level *** = 1% significance level Hafner 21 TABLE 4 (Attitude_economy) Coefficients without Coefficients with interaction interaction .0607 *** -.0186 (.0105) (.0261) .4718 *** .3189 *** (.0206) (.0505) n/a .0236 *** (.0071) .0184 -.0228 (.0569) (.0568) -.5910 *** -.5990 *** (.0994) (.0994) -.1977 -.1984 (.1177) (.1176) -.3949 *** .3968 *** (.0467) (.0467) -.0062 *** -.0070 *** (.0015) (.0015) .0223 ** .0226 ** (.0091) (.0091) .3482 *** .3477 *** (.0195) (.0195) 0.1337 0.1347 8845 8845 Again, there are similar results; the coefficients for income, education, native, female, age, religion, and equal were all significant. Income and education both have a positive effect on attitudes, with education playing a much larger role (.4718 increase in attitudes for reaching a higher level of education). There is again a big decrease in attitudes if the respondent is a native. One interesting result is that females tend to have more negative attitudes about how immigrants affect the economy than males do; this is different from the previous example, where women had a more positive view about how immigrants Hafner 22 affect Denmark’s culture. Age again has a very slight negative affect, while the coefficients for religion and equal are positive. When the regression is run including the interaction between income and education, the results are comparable; all the same coefficients are significant and have similar values. However, the interaction term is also significant, with a value of .0236. I again graphed income and education with attitude_economy to see how these affected attitude_economy. This is shown in Figure 3. Figure 3. 3 4 attitude_economy 5 6 7 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education There is a clear change in attitude_economy for reaching higher levels of education. There does not appear to be much of an income effect at low levels of education, but as Hafner 23 respondents reach higher levels of education, having more income will lead to a higher value for attitude_economy. Next, I run the regression using the dependent variable attitude_culture, and the results are displayed in Table 5. income education income * education worked native discriminated female age religion equal R2 Sample Size ** = 5% significance level *** = 1% significance level TABLE 5 (Attitude_culture) Coefficients without interaction .0461 *** (.0106) .5637 *** (.0209) n/a .0287 (.0578) -.4166 *** (.1006) -.1688 (.1193) .2197 *** (.0475) -.0113 *** (.0015) -.0035 (.0092) .4181 *** (.0199) 0.1634 8942 Coefficients with interaction -.0097 (.0266) .4562 *** (.0514) .0166 ** (.0073) -.0258 (.0578) -.4217 *** (.1006) -.1687 (.1193) .2182 *** (.0475) -.0118 *** (.0015) -.0033 (.0092) .4177 *** (.0199) 0.1638 8942 We again see a slight income effect and a much larger education effect; reaching a higher level of education translates into over a half point change in attitudes about how immigrants impact Denmark’s culture. The coefficients for native, female, age, and equal are also significant; being a native or being an older respondent translates to more Hafner 24 negative attitudes, while being a female or believing in more equality for all translates to better attitudes. After including the interaction term, we again see comparable results. The coefficient on income, however, is negative, but this result is not significant. The graph showing how education and income affect cultural attitudes towards immigrants can be seen in Figure 4. Figure 4. 4 5 attitude_culture 6 7 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education This graph shows fairly similar results to the last figure; education clearly has a significant effect on the value of attitude_culture, while the income effect is negligible at lower levels of education but increasing with education. Hafner 25 Variables for only Round 7 I next look at variables only included in round 7 of the ESS dataset. The first variable I use is attitude_job, whether people think immigrants create jobs or take jobs away. The results are shown in Table 6. income education income * education worked native discriminated female age religion feel_close equal R2 Sample Size ** = 5% significance level *** = 1% significance level Table 6 (Attitude_job) Coefficients without interaction .0347 (.0210) .3346 *** (.0449) n/a .1244 (.1265) -.2950 (.1985) -.4871 ** (.2343) .0811 (.1044) -.0041 (.0032) -.0528 *** (.0199) -.1269 (.0977) .2729 *** (.0444) 0.1018 1281 Coefficients with interaction -.0149 (.0556) .3035 *** (.0922) .0056 (.0146) -.1258 (.1266) -.2975 (.1987) -.4856 ** (.2344) .0800 (.1045) -.0039 (.0032) -.0525 *** (.0199) -.1279 (.0977) .2725 *** (.0444) 0.1012 1281 Using attitude_job as the dependent variable, and without including the interaction term, there are several significant results. As seen in previous tables, education has large and significant positive effect on attitude_job. The coefficient on Hafner 26 discriminated is significant at the 5% significance level, but in the negative direction. There is also a negative but slight effect for religion. equal, on the other hand, has a significant and positive effect. A similar outcome occurs when the interaction term is included. The income effect switches from positive to negative, but this is not significant. education and discriminated have the biggest effects, with education in the positive direction and discriminated in the negative direction. A graphical representation of how income and education affect attitude_job is shown in Figure 5. Figure 5. 4 4.5 attitude_job 5 5.5 6 6.5 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education There is again a clear education effect; there is over a one-point difference in the value for attitude_job when comparing the lowest level of education to the highest. There Hafner 27 appears to be a slight income effect, but this is most pronounced at higher levels of education. The next dependent variable used is attitude_poor, and the results are shown in Table 7. income education income * education worked native discriminated female age religion feel_close equal R2 Sample Size ** = 5% significance level *** = 1% significance level TABLE 7 (Attitude_poor) Coefficients without interaction .0123 (.0083) .1022 *** (.0178) n/a .0884 (.0503) -.0070 (.0782) -.0359 (.0929) -.0172 (.0415) -.0044 *** (.0013) .0091 (.0079) -.1633 *** (.0381) .1871 *** (.0177) 0.1451 1295 Coefficients with interaction -.0088 (.0220) .0967 *** (.0363) .0010 (.0058) -.0887 (.0503) .0066 (.0783) -.0357 (.0930) -.0174 (.0416) -.0044 *** (.0013) -.0090 (.0079) -.1635 *** (.0381) .1871 *** (.0177) 0.1444 1295 There are four variables with significant coefficients: education, age, religion, and feel_close. Education has a positive, but slightly smaller effect than in previous Hafner 28 tables. Age has a very slight negative effect. Since this regression includes variables that were only included in ESS round 7 data, the variable feel_close, how close the respondent feels to Denmark, is also included. The coefficient on feel_close is significant and negative, showing that people who feel closer to Denmark have a more negative view of immigrants. The last significant coefficient is on equal, and has a positive value. When the regression is run with the interaction term, the results are again very similar. The values for the coefficients change very slightly, and there are no other coefficients that become significant when the interaction is included. Figure 6 shows a graphical representation of the effects of education and income on attitude_poor. Figure 6. 2.2 2.4 attitude_poor 2.6 2.8 3 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education Hafner 29 As seen before, education has a clear effect on the values of attitude_poor, with higher education translating to more positive attitudes towards immigrants. There is also a slight income effect, but this does not seem to change much with education. Table 8 shows the results for the regression with the variable attitude_white included. This variable shows whether respondents think Denmark should allow immigrants who are not white into the country. income education income * education worked native discriminated female age religion feel_close equal R2 Sample Size ** = 5% significance level *** = 1% significance level TABLE 8 (Attitude_white) Coefficients without interaction .0592 ** (.0236) .2278 *** (.0504) n/a -.0869 (.1426) .2399 (.2254) .0052 (.2673) .3562 *** (.1175) -.0287 *** (.0036) -.0857 *** (.0222) -.2493 ** (.1078) .3543 *** (.0500) 0.1701 1304 Coefficients with interaction -.1074 (.0621) .3031 *** (.1030) -.0137 (.0163) -.0909 (.1427) .2459 (.2256) -.0021 (.2673) .3591 *** (.1176) -.0283 *** (.0036) -.0850 *** (.0223) -.2468 ** (.1078) .3550 *** (.0500) 0.1699 1304 Hafner 30 There are several variables that have significant coefficients. income has a significant and positive effect, but at the 5% significance level. At the 1% significance level, education has a positive effect, as do female and equal. On the other hand, age, religion, and feel_close have negative effects. When the regression is run with the interaction term included, the coefficient for income takes on a negative value but loses its significance. The coefficients for the other variables retain similar values. Figure 7 graphically shows how education and income affect attitude_white. Figure 7. 7 7.5 attitude_white 8 8.5 9 9.5 Predictive Margins with 95% CIs 1 10 income decile Less than Secondary Education Lower Secondary Education Upper Secondary Education Advanced Vocational Education Tertiary Education As expected, education has a positive effect on attitude_white. Interestingly, when people have a high income, education appears to have less of an effect. Another Hafner 31 observation to note is that the income effect is highest at low levels of education but flattens out at higher levels of education. Hafner 32 VII. ANALYSIS These results show that education is large determinant in shaping attitudes towards immigrants. Education has a significant impact on all the attitude variables; it has a positive effect on economic, cultural, and racial attitudes towards immigrants. However, the channel through which education affects attitudes is unclear. People who are highly educated have a more positive view towards various aspects of immigration, but why is this the case? Take the variable attitude_economy, for example, which measures whether people think immigration is good or bad for a country’s economy. As respondents reach a higher level of education, the value for attitude_economy increases by almost half a point. There are a few reasons for why this could be occurring. Achieving a higher education level may make respondents more knowledgeable about economic outcomes, and as a result may not feel as threatened by immigrants. Another potential reason is that highly educated people should also be more highly skilled, so they might not worry that an influx of low-skilled immigrants will negatively affect them by taking their jobs away. There also could be a cultural awareness factor; as people are more educated, they learn more about different cultures and gain tolerance for cultural groups other than their own. The exact mechanism at play is unclear; higher education results in better attitudes for both variables that measure economic attitudes towards immigrants and variables that measure cultural attitudes towards immigrants. There is likely a mix of both economic and cultural awareness towards immigration that results from increased education. What about the effect of income on attitudes towards immigrants? Based on the results, income does not appear to have much of an impact. There are a few occurrences Hafner 33 when income is significant, but the actual value of the income effect is slight. When the interaction term between education and income is included in the regressions, there are no cases where income alone has a significant effect. There are two cases where the interaction term (education times income) is significant: for the regression with attitude_economy as the dependent variable, the interaction term was significant at a 1% significance level, and for the regression that uses attitude_culture as the dependent variable, the interaction term was significant at the 5% significance level. However, the magnitude of these effects was very small. Another variable that had an impact on attitudes was native, whether or not the respondent was born in Denmark. For the regressions with attitudes variables that were included in all seven rounds, the coefficient on native was significant and negative. In the regression with attitude_living, being a native decreased the value of attitude_living by almost half a point. While it makes sense that natives will have more negative attitudes towards immigration than immigrants themselves will, the magnitude of this effect is likely due to the fact that there are not a lot of immigrants in the sample. The variable discriminated, which shows whether the respondent has been discriminated against, is significant in some of the regressions. In the regression that includes attitude_living, the coefficient on discriminated is significant at a 1% significance level, while for the regression that includes attitude_job, the coefficient is significant at a 5% significance level. The coefficients on discriminated are negative, indicating that people who have been discriminated against generally have more negative attitudes towards immigrants. This seems counterintuitive; it would make more sense that people who have been discriminated against would empathize with immigrants, a Hafner 34 group of people who are also often discriminated against. It is possible that there may be a cultural group in Denmark that experiences discrimination, but does not come from immigrant origins, and therefore the group members may have negative views towards immigrants. Gender of the respondent also affects attitudes. In all the regressions except the one including attitude_economy, the coefficient on female takes on positive values. For the regression including attitude_economy, being a female has a significant negative impact on the dependent variable. The reason for this occurrence is unclear; one reason might be that women worry about losing their jobs to immigrants. On the other hand, for the regression including attitude_job as the dependent variable, the coefficient on female is positive, indicating that females don’t think immigrants take jobs away. However, this coefficient is not significant, so it remains unclear why women have more negative attitudes towards the economic impact of immigration. The results for age, religion, and equal are relatively straightforward. As respondents get older, they tend to have a more negative view of the cultural and economic impacts of immigration, although this effect is slight. People who are more religious appear to have mixed view on immigration; in some regressions, the coefficient on religion is significant and positive, while in others, it is significant and negative. For all the regressions, the magnitude of the coefficient is small. This makes sense intuitively, as some religions may be more welcoming to immigrants of different faiths, while others may have a more negative view of religions other than their own. The variable equal, which shows whether the respondent believes that people should be treated equally and given equal opportunities, has a positive and significant coefficient in Hafner 35 every regression. Again, it makes sense that people who believe in equality would also have a positive view towards immigration. Finally, the variable feel_close is included in the regressions with ESS round 7 variables. This variable shows how close to Denmark the respondent feels, and the coefficient takes on negative values in each regression. For the regressions that include attitude_poor and attitude_white, the coefficient on feel_close is negative and statistically significant. This shows that people who feel closer to their country are also more likely to have negative views towards immigration. In terms of why this is the case, people may be more supportive of their country’s economic policies, and may think that immigration might undermine these policies, or they may feel that immigration may undermine the culture of the country. The exact mechanism through which this occurs is unclear. Hafner 36 VIII. CONCLUSION The goal of this paper was to determine the channels through which attitudes towards immigration are shaped. Education was expected to have a significant effect, and the results confirm that education is a key factor in shaping attitudes. However, the mechanism through which education shapes attitudes remains unclear. Based on the ESS dataset, it is difficult to determine whether education corresponds to more proimmigration attitudes because of increased cultural or economic awareness, or because increased skill levels as a result of education make the respondent feel more economically safe from immigration. While there were several interesting results from this research, having access to more data would be helpful. In later research, it could be useful to ask specific questions about high or low skilled workers instead of including immigrants in one category. This is a technique used in Hainmueller and Hiscox (2010) which could better help explain the way in which education affects attitudes towards immigration. Hafner 37 IX. REFERENCES Brochmann, G. & Hagelund, A. 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European Social Survey. http://www.europeansocialsurvey.org/ "Facts and Statistics." -The Official Website of Denmark.Wed. 23 Nov. 2015. http://denmark.dk/en/quick-facts/facts/ Foged, M. & Peri, G. “Immigrants’ Effect on Native Workers: New Analysis on Longitudinal Data,” Institute for the Study of Labor, March 2015. http://ftp.iza.org/dp8961.pdf Hainmueller, Jens and Hiscox, Michael J. “Educated Preferences: Explaining Attitudes Toward Immigration in Europe,” International Organization, 61, pp 399-442, 2007. http://journals.cambridge.org/abstract_S0020818307070142 Hainmueller, Jens and Hiscox, Michael J. Attitudes toward Highly Skilled and Lowskilled Immigration: Evidence from a Survey Experiment.” American Political Science Review, 104.01 (2010): 61-84. http://hdl.handle.net/1721.1/59821 Harmon, Nikolaj A. “Immigration, Ethnic Diversity and Political Outcomes: Evidence from Denmark”. University of Copenhagen, April 2014. http://www.econ.ku.dk/nharmon/docs/harmon2013immigration.pdf Hedetoft, Ulf. “Denmark: Integrating Immigrants into a Homogeneous Welfare State.” Nov. 2006. http://www.migrationpolicy.org/article/denmark-integrating-immigrantshomogeneous-welfare-state Scheve, Kenneth F. and Slaughter, Matthew J. “Labor Market Competition and Individual Preferences over Immigration Policy.” The Review of Economics and Statistics, Vol. 83, Feb. 2001. http://www.jstor.org/stable/2646696
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