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Some Economics of Immigration from an LDC to a DC: Stressing the Case of a Nordic Welfare State

In: Labor Mobility and the World Economy

Author

Listed:
  • Sheetal K. Chand

    (University of Oslo)

  • Martin Paldam

    (University of Aarhus)

Abstract

The economic consequences of immigration from a less developed country (LDC) to a developed country (DC) are potentially very advantageous for both the immigrant and the recipient country. Cultural differences and the institutions of the DC can cause both a shortfall in and a redistribution of the potential advantage through two mechanisms: the selection of immigrants and the incentives for labor market participation. These effects are examined in three stylized cases: a Dubai-like guest worker society, a U.S.-like immigrant society, and a Nordiclike tax-based welfare state. The Dubai-like case is closest to the potential, while the Nordic-like evolved welfare case deviates the most. Major institutional changes will be required for the latter to better realize the immigration benefit potential.

Suggested Citation

  • Sheetal K. Chand & Martin Paldam, 2006. "Some Economics of Immigration from an LDC to a DC: Stressing the Case of a Nordic Welfare State," Springer Books, in: Rolf J. Langhammer & Federico Foders (ed.), Labor Mobility and the World Economy, pages 145-173, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-31045-7_10
    DOI: 10.1007/978-3-540-31045-7_10
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    Cited by:

    1. Paldam, Martin, 2007. "Introduction to symposium `Immigration and the welfare state'," European Journal of Political Economy, Elsevier, vol. 23(2), pages 448-452, June.

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