 Unskilled Migration: A Burden or a Boon for the Welfare State?Assaf Razin and Efraim Sadka Scandinavian Journal of Economics, 2000, vol. 102, issue 3, 463-479 Abstract: As relatively low earners, migrants are net beneficiaries of the welfare state. Therefore, in a static setup, migration may be resisted by the entire native‐born population. However, it is shown that in a dynamic setup with a pension system, which is an important pillar of any welfare state, migration is beneficial to all income (high and low) and all age (old and young) groups, when the economy has good access to international capital markets. The pro‐migration feature of the dynamic model is weakened and possibly overturned when the economy does not have good access to such markets. In this case, to the extent that factor prices are significantly affected by migration because of low substitution between labour and capital, low‐skill native born and possibly also high‐skill native born may lose. Date: 2000 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:102:y:2000:i:3:p:463-479 Ordering information: This journal article can be ordered from Access Statistics for this article Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten More articles in Scandinavian Journal of Economics from Wiley Blackwell |
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