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

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

Chapter:
(p.43) 3 Implications of the Skill Composition of Migration for the Generosity of the Welfare State
Source:
Migration and the Welfare State
Author(s):

Assaf Razin

Efraim Sadka

Benjarong Suwankiri

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262016100.003.0003

This chapter investigates how the skill composition of migration affects decision-making in welfare states. The investigation is conducted through voters, who decide which skill-type migrants to allow into the country under a restricted migration policy. Voters vote to choose the tax rate and the generosity of the welfare state regarding the type and composition of migrants. Host countries with more skilled migrants decide on a more generous welfare state compared with a country having more unskilled migrants. Skilled migrants allow the host country to be a more generous welfare state as they contribute to the overall growth and development of the state. Empirical evidence supports the finding that a high proportion of skilled migrants have a positive impact on the generosity of the host country as determined by majority voting.

Keywords:   skill composition, welfare state, generosity

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