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

Sheetal Chand and Martin Paldam
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Martin Paldam: University of Aarhus

A chapter in Labor Mobility and the World Economy, 2006, pp 145-173 from Springer

Abstract: 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.

Keywords: Labor Market; Asylum Seeker; Cultural Distance; Labor Market Participation; Little Develop Country (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1007/978-3-540-31045-7_10

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