IDEAS home Printed from https://ideas.repec.org/p/ags/isfiwp/275593.html
   My bibliography  Save this paper

Resisting Migration: The Problems of Wage Rigidity and the Burden on the Welfare State

Author

Listed:
  • Razin, Assaf
  • Sadka, Efraim

Abstract

Just like any trade activity in well—functioning markets, migration tends to generate gains to all parties involved: the migrants as well as the native population. But these gains tend to be typically rather low. However, when the labor market is mal—functioning, migration exacerbates imperfections in the market. Consequently, it may lead to losses to the veteran population which can be quite sizable. Another problem raised by migration is the toll it imposes on the welfare state. Being unable to perfectly exclude migrants from various entitlement programs and public services, the modern welfare state finds it more and more costly to run its various programs. These two economic considerations may help explain why there is strong resistance to migration. Consequently, to be able to benefit more from migration, one may want to improve the functioning of the markets (with a possible compensation to wage earners that compete with unskilled migrants) and to be more selective in the scope of and the eligibility for the state entitlement programs.

Suggested Citation

  • Razin, Assaf & Sadka, Efraim, 1994. "Resisting Migration: The Problems of Wage Rigidity and the Burden on the Welfare State," Foerder Institute for Economic Research Working Papers 275593, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275593
    DOI: 10.22004/ag.econ.275593
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275593/files/TEL-AVIV-FSWP-230.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.275593?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David E. Wildasin, 1994. "Income Redistribution and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 637-656, August.
    2. Saint-Paul, Gilles, 1994. "Unemployment, wage rigidity, and the returns to education," European Economic Review, Elsevier, vol. 38(3-4), pages 535-543, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August.
    2. Assaf Razin & Efraim Sadka, 1996. "Tax Burden and Migration: A Political Economy Perspective," NBER Working Papers 5850, National Bureau of Economic Research, Inc.
    3. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    4. Razin, Assaf & Sadka, Efraim, 1995. "Resisting Migration: Wage Rigidity and Income Distribution," American Economic Review, American Economic Association, vol. 85(2), pages 312-316, May.
    5. Assaf Razin & Efraim Sadka, 1994. "Resisting Migration: The Problems of Wage Rigidity and the Social Burden," NBER Working Papers 4903, National Bureau of Economic Research, Inc.
    6. Blumkin, Tomer & Sadka, Efraim & Shem-Tov, Yotam, 2011. "Labor Migration and the Case for Flat Tax," Foerder Institute for Economic Research Working Papers 275759, Tel-Aviv University > Foerder Institute for Economic Research.
    7. Jaume Sempere, 2008. "Redistribution as a Local Public Good Subject to Congestion," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 49-62, January-J.
    8. Stefano Bosi & Eleni Iliopulos & Hubert Jayet, 2011. "Optimal Immigration Policy: When The Public Good Is Rival," The Japanese Economic Review, Japanese Economic Association, vol. 62(4), pages 460-484, December.
    9. Pierre Cahuc & Philippe Michel, 1995. "Salaire minimum, croissance et bien-être," Revue Économique, Programme National Persée, vol. 46(3), pages 585-594.
    10. Yoram Weiss & Robert M. Sauer & Menachem Gotlibovski, 2003. "Immigration, Search, and Loss of Skill," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 557-592, July.
    11. Jonathan Hamilton & Pierre Pestieau, 2005. "Optimal Income Taxation and the Ability Distribution: Implications for Migration Equilibria," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(1), pages 29-45, January.
    12. Cremer, Helmuth & Pestieau, Pierre, 1998. "Social insurance, majority voting and labor mobility," Journal of Public Economics, Elsevier, vol. 68(3), pages 397-420, June.
    13. Dinkelman, Taryn & Schulhofer-Wohl, Sam, 2015. "Migration, congestion externalities, and the evaluation of spatial investments," Journal of Development Economics, Elsevier, vol. 114(C), pages 189-202.
    14. Razin, A. & Sadka, E., 1998. "Migration and Pension," Papers 16-98, Tel Aviv.
    15. David E. Wildasin, 2000. "Factor mobility and fiscal policy in the EU: policy issues and analytical approaches," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(31), pages 338-378.
    16. Parviainen, Seija, 1998. "Redistribution and Risk Sharing in EMU," Discussion Papers 159, VATT Institute for Economic Research.
    17. Kjetil Bjorvatn, 1998. "Taxation and Migration in a Federal System," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(3), pages 345-355, July.
    18. Elsner, Benjamin & Concannon, Jeff, 2020. "Immigration and Redistribution," IZA Discussion Papers 13676, Institute of Labor Economics (IZA).
    19. Hans-Werner Sinn, 2005. "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, Springer;International Institute of Public Finance, vol. 12(4), pages 375-393, August.
    20. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:isfiwp:275593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fotauil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.