Working Paper: NBER ID: w26998
Authors: Assaf Razin; Alexander Horst Schwemmer
Abstract: Life cycle and insurance-type considerations dominate redistribution policy. Wage and fiscal prospects of ageing dominate migration policy. The paper compares distinct policy regimes, directed at migration and redistribution issues. Migration quotas, provision of social benefits, labor income taxation, and capital income taxation, are all endogenously determined in a policy-optimizing framework. The analysis makes a three-way comparison: free-migration regime vs. restricted-migration regime, welfare-state regime vs. no-migration-quota, no-redistribution regime, and low-income-majority regime vs. high-income-majority regime.
Keywords: No keywords provided
JEL Codes: F22; H3; H4; J11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| life cycle and insurance-type considerations (G52) | redistribution policy (H23) |
| wage and fiscal prospects of aging countries (J39) | migration policy (F22) |
| migration policy (F22) | immigration quotas (K37) |
| welfare state generosity (I38) | unskilled migrants (J61) |
| political economy context (P19) | preference for high-skilled migrants (J61) |
| migration policy (F22) | composition of migrants (F22) |