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The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state

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Author Info
Sheetal K. Chand
Martin Paldam () (Department of Economics, University of Aarhus, Denmark)
Abstract

This paper examines the economic and related consequences of immigration from a less developed country (LDC) to a developed 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 Nordic 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 Nordic type evolved welfare case, immigration is only an advantage for the immigrant, especially one with less marketable skills, while it is a disadvantage for the natives. This poses an additional threat to the continuation of this type of welfare state.

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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2004-4.

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Length: 25
Date of creation: 13 May 2004
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Handle: RePEc:aah:aarhec:2004-4

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

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Related research
Keywords: Immigration; welfare state;

Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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  1. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "Missing social capital and the transition in Eastern Europe," Working Papers 00-5, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
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  2. Timothy Hatton & Jeffery Williamson, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 458, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  3. Hans-Werner Sinn, 2004. "EU Enlargement, Migration and the New Constitution," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October. [Downloadable!] (restricted)
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  5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  6. Blume, Kræn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers 06-6, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
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  7. Kjetil Storesletten, 2003. "Fiscal Implications of Immigration-A Net Present Value Calculation," Scandinavian Journal of Economics, Blackwell Publishing, vol. 105(3), pages 487-506, 09. [Downloadable!] (restricted)
    Other versions:
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