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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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PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 26 September 2021

Tax-Transfer and Migration Policies: Competition between Host and Source Countries

Tax-Transfer and Migration Policies: Competition between Host and Source Countries

Chapter:
(p.123) 9 Tax-Transfer and Migration Policies: Competition between Host and Source Countries
Source:
Migration and the Welfare State
Author(s):

Assaf Razin

Efraim Sadka

Benjarong Suwankiri

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262016100.003.0009

This chapter, which examines the role of competition between host and source countries in determining tax-transfer and migration policies, states that in a basic tax-competition model, competition leads to the downward trend in tax-transfer due to certain mutually agreed-upon factors. It assigns an active role to the host and source countries to develop policies addressing the generosity of the welfare state. The host country is modeled as a member of the European Union (EU) welfare state, having tax-financed benefits and politico-economic-based migration policies. The source country is modeled as an additional EU member country with an individual welfare state. The two countries are also assumed to be similar, with the exception of the assumed total factor productivity in the host country being higher than that of the source country.

Keywords:   host country, source country, total factor productivity

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