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Social Harmony at the Boundaries of the Welfare State: Immigrants and Social Transfers

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Author Info
Epstein, Gil S. () (Department of Economics, Bar-Ilan University, Israel, CEPR, London and IZA, Bonn)
Hillman, Arye L. (Department of Economics, Bar-Ilan University, Israel, CEPR, London)

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Abstract

The social contract of the welfare state can be strained by the arrival of immigrants who receive welfare payments financed by citizens’ taxes. We show, however, that the presence of unemployed immigrants receiving welfare payments is consistent with social harmony. The social harmony, which is a consequence of a view of unemployment as a labor-market discipline, contrasts with the social conflict predicted by Karl Marx when he proposed his earlier version of the same explanation for unemployment. We demonstrate that a socially harmonious policy is always feasible. Outcomes without social harmony can therefore always be suitably amended.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 168.

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Length: 36 pages
Date of creation: Jun 2000
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Handle: RePEc:iza:izadps:dp168

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Related research
Keywords: Welfare state social harmony immigrants

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

References listed on IDEAS
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.:

  1. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November. [Downloadable!] (restricted)
  2. Lindbeck, A & Nyberg, S & Weibull, J-W, 1997. "Social Norms and Economic Incentives in the Welfare State," Research Institute of Industrial Economics Working Papers 476, Research Institute of Industrial Economics.
    Other versions:
  3. Epstein, Gil S & Hillman, Arye L & Ursprung, Heinrich W, 1999. "The King Never Emigrates," Review of Development Economics, Blackwell Publishing, vol. 3(2), pages 107-21, June. [Downloadable!] (restricted)
  4. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  5. Snower, Dennis J, 1993. "The Future of the Welfare State," Economic Journal, Royal Economic Society, vol. 103(418), pages 700-717, May. [Downloadable!] (restricted)
  6. Lindbeck, Assar, 1994. "The Welfare State and the Employment Problem," American Economic Review, American Economic Association, vol. 84(2), pages 71-75, May. [Downloadable!] (restricted)
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  7. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June. [Downloadable!] (restricted)
  8. Sinn, Hans-Werner, 1995. " A Theory of the Welfare State," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(4), pages 495-526, December.
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  9. Lindbeck, A. & Snower, D.J., 1990. "Interactions between the Efficiency Wage and Insider- Outsider Theories," Papers 474, Stockholm - International Economic Studies.
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  10. Snower, Dennis J., 1994. "What is the Domain of the Welfare State?," CEPR Discussion Papers 1018, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Epstein, Gil S & Weiss, Avi, 2001. "A Theory of Immigration Amnesties," CEPR Discussion Papers 2830, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. de Melo, Jaime & Grether, Jean-Marie & Müller, Tobias, 2001. "The Political Economy of International Migration in a Ricardo-Viner Model," CEPR Discussion Papers 2714, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Andersson, Fredrik & A. Konrad, Kai, 2001. "Globalization and Human Capital Formation," IZA Discussion Papers 245, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Ira N. Gang & Myeong-Su Yun, 2006. "Immigration Amnesty and Immigrant's Earnings," Departmental Working Papers 200632, Rutgers University, Department of Economics. [Downloadable!]
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