Unskilled Migration: A Burden or a Boon for the Welfare State?

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2000
Volume: 102
Issue: 3
Pages: 463-479

Authors (2)

Assaf Razin (Tel Aviv University) Efraim Sadka (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:bla:scandj:v:102:y:2000:i:3:p:463-479
Journal Field
General
Author Count
2
Added to Database
2026-01-29