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Labor Migration Policy and the Governance of the Construction Industry in Israel and Japan

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  • David Bartram

Abstract

Significant “guestworker†immigration occurs when the state lacks the capacity to inhibit rent-seeking by private interests that benefit from imported labor. Policies allowing imported labor result in government subsidies for employers’ profits. These subsidies are usefully conceived as rents. A developmentalist state(e.g. Japan) will constrain the creation of such rents, especially because imported labor carries long-term costs not borne by employers and inhibits productivity growth and positive structural change. A clientelist state (e.g. Israel) falls prey to this type of rent-seeking because of a weaker institutional capacity for creating conditions that make alternative solutions feasible and profitable for employers.

Suggested Citation

  • David Bartram, 2004. "Labor Migration Policy and the Governance of the Construction Industry in Israel and Japan," Politics & Society, , vol. 32(2), pages 131-170, June.
    • Handle: RePEc:sae:polsoc:v:32:y:2004:i:2:p:131-170
    DOI: 10.1177/0032329204263068
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