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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

  • Sheetal K. Chand
  • Martin Paldam

    ()

    (Department of Economics, University of Aarhus, Denmark)

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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File URL: ftp://ftp.econ.au.dk/afn/wp/04/wp04_04.pdf
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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
Date of revision:
Handle: RePEc:aah:aarhec:2004-4
Contact details of provider: Web page: http://www.econ.au.dk/afn/

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  1. Storesletten, Kjetil, 2001. "Fiscal Implications of Immigration - A Net Present Value Calculation -," Seminar Papers 701, Stockholm University, Institute for International Economic Studies.
  2. Timothy J. Hatton & Jeffrey G. Williamson, 2002. "What Fundamentals Drive World Migration?," NBER Working Papers 9159, National Bureau of Economic Research, Inc.
  3. Blume, Kræn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers 06-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
  5. Sinn, Hans-Werner, 2004. "EU Enlargement, Migration and the New Constitution," Munich Reprints in Economics 19609, University of Munich, Department of Economics.
  6. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
  7. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June.
  8. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  9. Paldam, M. & Svendsen, G.T., 2000. "Missing Social Capital and the Transition in Eastern Europe," Papers 00-5, Aarhus School of Business - Department of Economics.
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