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Immigration policy and welfare state design; a qualitative approach to explore the interaction

Author

Listed:
  • Victoria Chorny

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Rob Euwals

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Kees Folmer

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

For the design of an immigration policy, in terms of the number and skills of the entrants and their effect on the host country, it is important to realize that the kind of welfare state matters. This study confronts three possible labour migration regimes - a temporary, an open and a selective regime - with two possible welfare state settings - a highly redistributive and a hardly redistributive welfare state. By comparing the likely outcomes between the different regimes, and by taking possible effects on the self-selection of immigrants into account, the study draws the following conclusions.First, both labour migration policy and the welfare state matter for the skill composition of labour migrants.Second, to be attractive for high-skilled labour migrants a highly distributive welfare state needs to undo its discouraging effect on these migrants.Third, a highly redistributive welfare state is attractive for low-skilled labour migrants. Because these migrants may become costly for such a welfare state once they manage to stay permanently, one should be careful with the introduction of temporary migration policies for the low-skilled.

Suggested Citation

  • Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:docmnt:153.rdf
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    File URL: https://www.cpb.nl/sites/default/files/publicaties/download/immigration-policy-and-welfare-state-design-qualitative-approach-explore-interaction.pdf
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    References listed on IDEAS

    as
    1. Yusheng Peng & Lynne G. Zucker & Michael R. Darby, 1997. "Chinese Rural Industrial Productivity and Urban Spillovers," NBER Working Papers 6202, National Bureau of Economic Research, Inc.
    2. Abhijit V. Banerjee & Andrew F. Newman, 1998. "Information, the Dual Economy, and Development," Review of Economic Studies, Oxford University Press, vol. 65(4), pages 631-653.
    3. Ahuja,Vinod Kumar & Filmer,Deon P. & Ahuja, Vinod*Filmer, Deon, 1995. "Educational attainments in developing countries : new estimates and projections disaggregated by gender," Policy Research Working Paper Series 1489, The World Bank.
    4. Zuliu F. Hu & Mohsin S. Khan, 1997. "Why Is China Growing So Fast?," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 103-131, March.
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    Citations

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    Cited by:

    1. Michiel Bijlsma & Arno Meijer & Victoria Shestalova, 2008. "Vertical relationships between health insurers and healthcare providers," CPB Document 167.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Wouter Vermeulen & Christian A. L. Hilber & Teemu Lyytikäinen, 2011. "Capitalization of Central Government Grants into Local House Prices," CPB Discussion Paper 167.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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