Working Paper: NBER ID: w20450
Authors: Assaf Razin; Efraim Sadka
Abstract: Over the years, there emerged two key policy differences between Europe and America, both welfare and migration-states. The former has more generous welfare state and more liberal migration policies than the latter. In this paper we attempt to provide a political-economy explanation for these key differences, based on the degree of coordination among member states of the economic union, and the different levels of population aging.
Keywords: migration; welfare state; political economy; policy differences
JEL Codes: F2; H23; H87
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| degree of coordination among member states of the economic union (F36) | welfare state generosity (I38) |
| degree of coordination among member states of the economic union (F36) | migration policies (F22) |
| population aging in Europe (J11) | political dynamics surrounding immigration and welfare state policies (P16) |
| population aging in Europe (J11) | high-skill migration policies (J61) |
| younger populations (J11) | resistance to high-skill migration policies (J68) |