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Migrant Workers and the Welfare State

Author

Listed:
  • Andersen, Torben M.

    (Aarhus University)

  • Migali, Silvia

    (Fern Universität Hagen)

Abstract

There is wide concern that migration flows may undermine the financial viability of generous welfare arrangements. The discussion focuses on welfare arrangements as attractors of migrants, suggesting that the issue does not pertain to migrant workers. However, this overlooks how welfare arrangements affect return-migration in case of social events like job loss. Importantly, migrants are shown to be self-selected in a way affecting both migration and return-migration. Two migration regimes prevail. In one, with relatively low benefits, unemployed workers return, while in the other some stay. Importantly, the stay or return migration decision is more sensitive to welfare generosity than the migration decision.

Suggested Citation

  • Andersen, Torben M. & Migali, Silvia, 2016. "Migrant Workers and the Welfare State," IZA Discussion Papers 9940, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9940
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    2. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    3. repec:grz:wpsses:2021-07 is not listed on IDEAS

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    More about this item

    Keywords

    migrant workers; return-migration; job-loss; unemployment benefits;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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