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Immigration policy and welfare state design; a qualitative approach to explore the interaction

Author

Listed:
  • Victoria Chorny
  • Rob Euwals

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Kees Folmer
Abstract
For the design of an immigration policy, in terms of the number and skills of the entrants and their effect on the host country, it is important to realize that the kind of welfare state matters. This study confronts three possible labour migration regimes - a temporary, an open and a selective regime - with two possible welfare state settings - a highly redistributive and a hardly redistributive welfare state. By comparing the likely outcomes between the different regimes, and by taking possible effects on the self-selection of immigrants into account, the study draws the following conclusions.First, both labour migration policy and the welfare state matter for the skill composition of labour migrants.Second, to be attractive for high-skilled labour migrants a highly distributive welfare state needs to undo its discouraging effect on these migrants.Third, a highly redistributive welfare state is attractive for low-skilled labour migrants. Because these migrants may become costly for such a welfare state once they manage to stay permanently, one should be careful with the introduction of temporary migration policies for the low-skilled.

Suggested Citation

  • Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:docmnt:153
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    References listed on IDEAS

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    Cited by:

    1. Michèle Belot & Sjef Ederveen, 2012. "Cultural barriers in migration between OECD countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1077-1105, July.
    2. Schmähl, Winfried, 2008. "Immigration from outside Europe: chance or challenge for social security? Dimensions of a complex topic," Working papers of the ZeS 05/2008, University of Bremen, Centre for Social Policy Research (ZeS).

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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