Immigration as a challenge to the Danish welfare state?

Peter Nannestad ()
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Peter Nannestad: Aarhus University

A chapter in 40 Years of Research on Rent Seeking 2, 2004, pp 281-293 from Springer

Abstract: 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.

Keywords: Immigration; Welfare state; Redistribution (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-79247-5_15

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DOI: 10.1007/978-3-540-79247-5_15

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