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Immigration as a challenge to the Danish welfare state?

In: 40 Years of Research on Rent Seeking 2

Author

Listed:
  • Peter Nannestad

    (Aarhus University)

Abstract

In a universalistic, tax-financed welfare state such as that of Denmark with strong redistribution, gains and losses from migration may be asymmetrically distributed between immigrants and natives. The redistributive welfare state both weakens the incentives of immigrants to enter the labor market and creates barriers to entry to the labor market. As a consequence, immigrants as a group are net beneficiaries of the welfare state even after extended periods of stay in the country. While soaring dependency ratios are expected in the future due to an aging native population, immigration has so far added to rather than ameliorated this problem. The Danish experience would seem to suggest that unchecked immigration and a redistributive welfare state are difficult to reconcile.

Suggested Citation

  • Peter Nannestad, 2004. "Immigration as a challenge to the Danish welfare state?," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 281-293, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79247-5_15
    DOI: 10.1007/978-3-540-79247-5_15
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    Citations

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    Cited by:

    1. Peter Kurrild-Klitgaard, 2015. "Classical Liberalism and Modern Political Economy in Denmark," Econ Journal Watch, Econ Journal Watch, vol. 12(3), pages 400–431-4, September.
    2. Arye L. Hillman & Ngo Long, 2022. "Immigrants as future voters," Public Choice, Springer, vol. 190(1), pages 149-174, January.
    3. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    4. Jakubiak Igor, 2017. "Migration and Welfare Systems – State of the Art and Research Challenges," Central European Economic Journal, Sciendo, vol. 1(48), pages 51-70, November.
    5. François-Charles Wolff & Ralitza Dimova, 2006. "How Do Migrants Care for Their Elderly Parents? Time, Money and Location," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(V), pages 123-130.

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