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The economics of immigration into a welfare state

Author

Listed:
  • Chand, Sheetal K.
  • Paldam, Martin

    (Department of Economics Aarhus, Denmark)

Abstract

The NPV of the income flows associated with an LDC outward migration are calculated for both the immigrant from the LDC and for the host country DC in three different stylized cases: A guest worker society of the Dubai type, an immigrant society of the US type, and a tax-based welfare state with institutions of the Danish type. In the Dubai type case it appears that mutually beneficial decisions can be made, and the same applies to a degree in the US type case. However, in the Danish type evolved welfare case, immigration is an advantage for the immigrant, especially one with less marketable skills and a disadvantage for the natives. This poses an additional threat to the continuation of the traditional type of welfare state.

Suggested Citation

  • Chand, Sheetal K. & Paldam, Martin, "undated". "The economics of immigration into a welfare state," Economics Working Papers 2003-18, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2003-18
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    File URL: https://repec.econ.au.dk/repec/afn/wp/03/wp03_18.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Morten Spange, 2004. "Automatic Stabilizers in an Economy with Multiple Shocks," Economics Working Papers 2004-3, Department of Economics and Business Economics, Aarhus University.

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    More about this item

    Keywords

    Immigration; welfare state;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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