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Migration and the Welfare StatePolitical-Economy Policy Formation$
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Assaf Razin, Efraim Sadka, and Benjarong Suwankiri

Print publication date: 2011

Print ISBN-13: 9780262016100

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262016100.001.0001

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Key Implications of the Generosity of the Welfare State for the Skill Composition of Migration

Key Implications of the Generosity of the Welfare State for the Skill Composition of Migration

Chapter:
(p.13) 2 Key Implications of the Generosity of the Welfare State for the Skill Composition of Migration
Source:
Migration and the Welfare State
Author(s):

Assaf Razin

Efraim Sadka

Benjarong Suwankiri

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262016100.003.0002

This chapter addresses the impact of benevolence of the welfare state on the skill aspect of migration. It examines the difference in policy regimes in EU and non-EU states regarding the concept of the free and restricted migration of workers. The differences in migration policies are associated with the kindness of the welfare state. The chapter suggests that European Union members need to adopt more liberal migration policies to address the challenges of a declining productive workforce and the increasing burden on financial institutions. A liberal migration policy will attract a skilled workforce and will help to sustain the economies of these states. Unskilled migrants use benefits provided by the welfare state and put more of a burden on the institutions and the overall economies of such states. Voters in these states urge the government to formulate a more liberal migration policy for skilled workers and a restricted one for unskilled workers.

Keywords:   welfare state, migration policy, financial institutions

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