Unskilled Migration: a Burden or a Boon for the Welfare State?
AbstractBeing relatively low earners, migrants are net beneficiaries of the welfare state. Therefore, in a static setup migration may be resisted by the entire native-born population. However, it is shown that in a dynamic setup with a pension system which is an important pillar of any welfare state, migration is beneficial to all income (high and low) and age (old and young) groups when the economy has a good access to international capital markets. The pro-migration feature of the dynamic model is weakened and possibly overturned when the economy does not have good access to the world capital markets. In this case, to the extent that factor prices are significantly affected by migration because of low substitution between labor and capital, low-skill native born and possibly also high-skill native born may lose.
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Bibliographic InfoPaper provided by Tel Aviv in its series Papers with number 8-99.
Length: 23 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Web page: http://econ.tau.ac.il/research/foerder.asp
More information through EDIRC
MIGRATION ; PENSION FUNDS ; LABOUR MARKET;
Other versions of this item:
- Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-79, June.
- Assaf Razin & Efraim Sadka, 1999. "Unskilled Migration: A Burden or a Boon for the Welfare State," NBER Working Papers 7013, National Bureau of Economic Research, Inc.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- J1 - Labor and Demographic Economics - - Demographic Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David E. Wildasin, 1994.
"Income Redistribution and Migration,"
Canadian Journal of Economics,
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NBER Working Papers
3423, National Bureau of Economic Research, Inc.
- Razin, A. & Sadka, E., 1992.
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28-94, Tel Aviv.
- Razin, Assaf & Sadka, Efraim, 1995. "Resisting Migration: Wage Rigidity and Income Distribution," American Economic Review, American Economic Association, vol. 85(2), pages 312-16, May.
- Razin, Assaf & Sadka, Efraim, 1995. "Resisting Migration: Wage Rigidity and Income Distribution," CEPR Discussion Papers 1091, C.E.P.R. Discussion Papers.
- Peter S. Heller, 1998. "Rethinking Public Pension Reform Initiatives," IMF Working Papers 98/61, International Monetary Fund.
- Richard Hemming, 1998. "Should Public Pensions be Funded?," IMF Working Papers 98/35, International Monetary Fund.
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