Migration, Social Standards and Replacement Incomes: How to Protect Low-income Workers in the Industrialized Countries Against the Forces of Globalization and Market Integration
This paper discusses how an industrialized country could defend the wages and social benefits of its unskilled workers against wage competition from immigrants. It shows that fixing social standards harms the workers and that fixing social replacement incomes implies migration into unemployment. Defending wages with replacement incomes brings about first-order efficiency losses that outweigh the budget cost to the government. By contrast, wage subsidies involve much smaller welfare losses. While the exclusion of migrants from a national replacement program does not improve the situation, the (temporary) exclusion of migrants from a national subsidy program makes it possible to avoid a distortion of the migration pattern.
|Date of creation:||Sep 2004|
|Date of revision:|
|Publication status:||published as Sinn, Hans-Werner. "Migration And Social Replacement Incomes: How To Protect Low-Income Workers In The Industrialized Countries Against The Forces Of Globalization And Market Integration," International Tax and Public Finance, 2005, v12(4,Aug), 375-393.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Sinn, Hans-Werner, 2002.
"EU Enlargement and the Future of the Welfare State,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 49(1), pages 104-15, February.
- Hans-Werner Sinn, 2000. "EU Enlargement and the Future of the Welfare State," CESifo Working Paper Series 307, CESifo Group Munich.
- Sinn, Hans-Werner, 2002. "EU enlargement and the future of the welfare state," Munich Reprints in Economics 19736, University of Munich, Department of Economics.
- Wolfram F. Richter, 2002.
"Delaying Integration of Immigrant Labor for the Purpose of Taxation,"
CESifo Working Paper Series
802, CESifo Group Munich.
- Richter, Wolfram F., 2004. "Delaying integration of immigrant labor for the purpose of taxation," Journal of Urban Economics, Elsevier, vol. 55(3), pages 597-613, May.
- Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 505-525, January.
- Sinn, Hans-Werner, 1990.
"Tax harmonization and tax competition in Europe,"
Munich Reprints in Economics
19846, University of Munich, Department of Economics.
- Cremer, Helmuth & Pestieau, Pierre, 1996.
"Distributive implications of European integration,"
European Economic Review,
Elsevier, vol. 40(3-5), pages 747-757, April.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:10798. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.