The economics of immigration into a welfare state

Sheetal Chand and Martin Paldam

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: The NPV of the income flows associated with an LDC outward migration are calculated for both the immigrant from the LDC and for the host country DC in three different stylized cases: A guest worker society of the Dubai type, an immigrant society of the US type, and a tax-based welfare state with institutions of the Danish type. In the Dubai type case it appears that mutually beneficial decisions can be made, and the same applies to a degree in the US type case. However, in the Danish type evolved welfare case, immigration is an advantage for the immigrant, especially one with less marketable skills and a disadvantage for the natives. This poses an additional threat to the continuation of the traditional type of welfare state.

Keywords: Immigration; welfare state (search for similar items in EconPapers)
JEL-codes: F22 J41 J70 O15 (search for similar items in EconPapers)
Pages: 24
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2003-18

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