The Skill Composition of Migration and the Generosity of the Welfare State
AbstractSkilled migrants typically contribute to the welfare state more than they draw in benefits from it. The opposite holds for unskilled migrants. This suggests that a host country is likely to boost (respectively, curtail) its welfare system when absorbing high-skill (respectively, low-skill) migration. In this paper we first examine this hypothesis in a politico-economic setup. We then confront the prediction of the theory with evidence. In doing so, we reckon with an endogeneity problem that arise because the skill composition of migration is itself affected by the generosity of the welfare state.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7185.
Date of creation: Feb 2009
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Other versions of this item:
- Alon Cohen & Assaf Razin & Efraim Sadka, 2009. "The Skill Composition of Migration and the Generosity of the Welfare State," NBER Working Papers 14738, National Bureau of Economic Research, Inc.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- H10 - Public Economics - - Structure and Scope of Government - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-28 (All new papers)
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