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Unproductive immigrants: A socially optimal policy for rational egalitarians

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  • Nannestad, Peter

Abstract

Large parts of the population of third-world immigrants to rich countries have not been successfully integrated into domestic labor markets and so are not productively employed. A potential "immigration surplus" has therefore not been realized. These circumstances have been explained with reference to irrational behavior by natives (acting out of racism) and/or malevolent motives of either natives or immigrants, or both. In this paper, I propose an explanation for labor-market exclusion of immigrants as the optimal outcome of objectives of rational egalitarianism: that is, all people are rational and behave solely in accord with ethical socially irreproachable motives. The explanation fits the stylized facts of the Danish case. The predictions are also consistent with observed inter-country differences in labor-market exclusion of immigrants.

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  • Nannestad, Peter, 2009. "Unproductive immigrants: A socially optimal policy for rational egalitarians," European Journal of Political Economy, Elsevier, vol. 25(4), pages 562-566, December.
    • Handle: RePEc:eee:poleco:v:25:y:2009:i:4:p:562-566
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    References listed on IDEAS

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    1. Hillman, Arye L. & Epstein, Gil S, 2000. "Social Harmony At The Boundaries Of The Welfare State: Immigrants And Social Transfers," CEPR Discussion Papers 2414, C.E.P.R. Discussion Papers.
    2. Coate, Stephen, 1995. "Altruism, the Samaritan's Dilemma, and Government Transfer Policy," American Economic Review, American Economic Association, vol. 85(1), pages 46-57, March.
    3. Hillman,Arye L., 2009. "Public Finance and Public Policy," Cambridge Books, Cambridge University Press, number 9780521494267, April.
    4. Lindbeck, Assar & Snower, Dennis J., 2002. "The Insider-Outsider Theory: A Survey," IZA Discussion Papers 534, Institute of Labor Economics (IZA).
    5. Hillman,Arye L., 2009. "Public Finance and Public Policy," Cambridge Books, Cambridge University Press, number 9780521738057, April.
    6. Borooah, Vani K. & Mangan, John, 2007. "Living here, born there: The economic life of Australia's immigrants," European Journal of Political Economy, Elsevier, vol. 23(2), pages 486-511, June.
    7. 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.
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    Cited by:

    1. Azarnert, Leonid V., 2010. "Immigration, fertility, and human capital: A model of economic decline of the West," European Journal of Political Economy, Elsevier, vol. 26(4), pages 431-440, December.
    2. Arye L. Hillman & Ngo Long, 2022. "Immigrants as future voters," Public Choice, Springer, vol. 190(1), pages 149-174, January.
    3. Bergh, Andreas, 2014. "Explaining Cross-Country Differences in Labor Market Gaps between Immigrants and Natives in the OECD," Working Paper Series 1036, Research Institute of Industrial Economics.
    4. Naiditch, Claire & Vranceanu, Radu, 2010. "Equilibrium migration with invested remittances: The EECA evidence," European Journal of Political Economy, Elsevier, vol. 26(4), pages 454-474, December.
    5. Azarnert, Leonid V., 2018. "Refugee resettlement, redistribution and growth," European Journal of Political Economy, Elsevier, vol. 54(C), pages 89-98.
    6. Johan Klaesson & Özge Öner, 2021. "Ethnic enclaves and segregation—self-employment and employment patterns among forced migrants," Small Business Economics, Springer, vol. 56(3), pages 985-1006, February.
    7. Gaston, Noel & Rajaguru, Gulasekaran, 2013. "International migration and the welfare state revisited," European Journal of Political Economy, Elsevier, vol. 29(C), pages 90-101.
    8. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
    9. Öner, Özge & Klaesson, Johan, 2018. "Ethnic Enclaves and Labor Market Outcomes – What Matters Most: Neighborhood, City or Region?," Working Paper Series 1251, Research Institute of Industrial Economics.

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