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Migration and the Welfare State: Political-Economy Policy Formation

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Author Info

  • Razin, Assaf

    ()
    (Tel Aviv University)

  • Sadka, Efraim

    ()
    (Tel Aviv University)

  • Suwankiri, Benjarong

    ()
    (Cornell University)

Abstract

Nobel laureate economist Milton Friedman once noted that free immigration cannot coexist with a welfare state. A welfare state with open borders might turn into a haven for poor immigrants, which would place such a fiscal burden on the state that native-born voters would support less-generous benefits or restricted immigration, or both. And yet a welfare state with an aging population might welcome young skilled immigrants. The preferences of the native-born population toward migration depend on the skill and age composition of the immigrants, and migration policies in a political-economy framework may be tailored accordingly. This book examines how social benefits-immigrations political economy conflicts are resolved, with an empirical application to data from Europe and the developed countries, integrating elements from population, international, public, and political economics into a unified static and dynamic framework. Using a static analytical framework to examine intra-generational distribution, the authors first focus on the skill composition of migrants in both free and restricted immigration policy regimes, drawing on empirical research from EU-15 and non-EU-15 states. The authors then offer theoretical analyses of similar issues in dynamic overlapping generations settings, studying not only intragenerational but also intergenerational aspects, including old-young dependency ratios and skilled-unskilled conflicts. Finally, they examine overall gains from or costs of migration in both host and source countries and the race to the bottom argument of tax competition between states in the presence of free migration.

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Bibliographic Info

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This book is provided by The MIT Press in its series MIT Press Books with number 0262016109 and published in 2011.

Volume: 1
Edition: 1
ISBN: 0-262-01610-9
Handle: RePEc:mtp:titles:0262016109

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Web page: http://mitpress.mit.edu

Related research

Keywords: welfare; migration; international economics; politics;

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Citations

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Cited by:
  1. Assaf Razin & Jackline Wahba, 2012. "Migration Policy and the Generosity of the Welfare State in Europe," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(4), pages 28-31, 02.
  2. Giuranno, Michele G. & Rongili, Biswas, 2012. "Inter-jurisdictional migration and the size of government," MPRA Paper 42604, University Library of Munich, Germany.
  3. Stark, Oded & Casarico, Alessandra & Devillanova, Carlo & Uebelmesser, Silke, 2011. "On the formation of international migration policies when no country has an exclusive policy-setting say," Discussion Papers 117431, University of Bonn, Center for Development Research (ZEF).
  4. Torben M. Andersen & Allan Sørensen, 2013. "Product market integration, tax distortions and public sector size," Economics Working Papers 2013-28, School of Economics and Management, University of Aarhus.
  5. Ian Preston, 2013. "The Effect of Immigration on Public Finances," CReAM Discussion Paper Series 1323, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Paolo E. Giordani & Michele Ruta, 2012. "Self-Confirming Immigration Policy," CESifo Working Paper Series 3762, CESifo Group Munich.
  7. Fatica, Serena, 2011. "Preferences for redistribution, the size of government and the tax system," MPRA Paper 29782, University Library of Munich, Germany.
  8. Giulietti, Corrado & Wahba, Jackline, 2012. "Welfare Migration," IZA Discussion Papers 6450, Institute for the Study of Labor (IZA).

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