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The economics of immigration into a welfare state

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Author Info

  • Chand, Sheetal K.
  • Paldam, Martin

    ()
    (Department of Economics Aarhus, Denmark)

Abstract

The NPV of the income flows associated with an LDC outward migration are calculated for both the immigrant from the LDC and for the host country DC in three different stylized cases: A guest worker society of the Dubai type, an immigrant society of the US type, and a tax-based welfare state with institutions of the Danish type. In the Dubai type case it appears that mutually beneficial decisions can be made, and the same applies to a degree in the US type case. However, in the Danish type evolved welfare case, immigration is an advantage for the immigrant, especially one with less marketable skills and a disadvantage for the natives. This poses an additional threat to the continuation of the traditional type of welfare state.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2003-18.

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Length: 24
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Handle: RePEc:aah:aarhec:2003-18

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Immigration; welfare state;

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References

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  1. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October.
  2. Storesletten, Kjetil, 2001. "Fiscal Implications of Immigration - A Net Present Value Calculation -," Seminar Papers 701, Stockholm University, Institute for International Economic Studies.
  3. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June.
  4. Blume, Kr├Žn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers 06-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  6. Paldam, M. & Svendsen, G.T., 2000. "Missing Social Capital and the Transition in Eastern Europe," Papers 00-5, Aarhus School of Business - Department of Economics.
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Cited by:
  1. Morten Spange, 2004. "Automatic Stabilizers in an Economy with Multiple Shocks," Economics Working Papers 2004-3, School of Economics and Management, University of Aarhus.

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