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Migrant Workers and the Welfare State

Listed author(s):
  • Andersen, Torben M.

    ()

    (Aarhus University)

  • Migali, Silvia

    ()

    (Fern Universität Hagen)

There is wide concern that migration flows may undermine the financial viability of generous welfare arrangements. The discussion focuses on welfare arrangements as attractors of migrants, suggesting that the issue does not pertain to migrant workers. However, this overlooks how welfare arrangements affect return-migration in case of social events like job loss. Importantly, migrants are shown to be self-selected in a way affecting both migration and return-migration. Two migration regimes prevail. In one, with relatively low benefits, unemployed workers return, while in the other some stay. Importantly, the stay or return migration decision is more sensitive to welfare generosity than the migration decision.

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File URL: http://ftp.iza.org/dp9940.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9940.

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Length: 46 pages
Date of creation: May 2016
Handle: RePEc:iza:izadps:dp9940
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  1. Assaf Razin & Jackline Wahba, 2015. "Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 369-402, April.
  2. Mayr Karin & Peri Giovanni, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-52, November.
  3. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
  4. Zaiceva, Anzelika & Zimmermann, Klaus F., 2012. "Returning Home at Times of Trouble? Return Migration of EU Enlargement Migrants during the Crisis," IZA Discussion Papers 7111, Institute for the Study of Labor (IZA).
  5. Corrado Giulietti, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 24-38, March.
  6. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2014. "Labour Migrant Adjustments in the Aftermath of the Financial Crisis," IZA Discussion Papers 8291, Institute for the Study of Labor (IZA).
  7. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
  8. Michele Pellizzari, 2013. "The use of welfare by migrants in Italy," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 155-166, May.
  9. Alan Barrett, 2013. "Immigrants and welfare receipt in Ireland," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 142-154, May.
  10. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
  11. Corrado Giulietti, 2014. "The welfare magnet hypothesis and the welfare take-up of migrants," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-37, June.
  12. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-176, February.
  13. KIrdar, Murat G., 2009. "Labor market outcomes, savings accumulation, and return migration," Labour Economics, Elsevier, vol. 16(4), pages 418-428, August.
  14. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
  15. Alan Barrett & Yvonne McCarthy, 2007. "Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence," LABOUR, CEIS, vol. 21(4-5), pages 789-808, December.
  16. Dustmann, Christian, 1999. " Temporary Migration, Human Capital, and Language Fluency of Migrants," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(2), pages 297-314, June.
  17. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
  18. Christoph Skupnik, 2014. "EU enlargement and the race to the bottom of welfare states," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-21, December.
  19. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
  20. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
  21. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
  22. repec:iza:izawol:journl:y:2014:p:37 is not listed on IDEAS
  23. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  24. Patricia Reagan & Randall Olsen, 2000. "You can go home again: Evidence from longitudinal data," Demography, Springer;Population Association of America (PAA), vol. 37(3), pages 339-350, August.
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