Migration and Fiscal Externality: US vs Europe

Working Paper: CEPR ID: DP15455

Authors: Assaf Razin

Abstract: The paper compares migration policy and welfare state generosity between America and Europe. There is more selective skill-based migration policy in the US compared to the European Union. Policy coordination among states within the federal system on migration, taxes, and social benefits among states within the US federal system is stronger than among countries within the European Union. Fiscal externality, triggered by migration and tax competition among members of the federal system may explain in part these US-Europe differences in policies.

Keywords: No keywords provided

JEL Codes: No JEL codes provided


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Migration policies (F22)Skill composition of migrants (J61)
Skill composition of migrants (J61)Innovative edge of the US economy (O51)
Stronger policy coordination (E61)Migration outcomes (F22)
Welfare state generosity (I38)Migration patterns (F22)
Fiscal externalities (H39)Policy outcomes (D78)
Lack of cooperation among EU member states (F55)Fiscal externalities (H39)

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