Working Paper: NBER ID: w28126
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: F0; H0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Selective skill-based migration policies in the US (J68) | Higher proportion of highly skilled migrants in the US (J61) |
| Generous welfare states in the EU (H53) | Attraction of low-skilled migrants (J69) |
| Federal structure of the US (H77) | Stronger coordination among states regarding migration and tax policies (H73) |
| Fiscal externalities triggered by migration (H87) | Differences in outcomes for regions experiencing labor inflows (J69) |
| Welfare state in Europe (P16) | Deterrence of high-skilled migration due to high redistributive taxes (H31) |
| Aging population in the US and Europe (J11) | Impact on migration and welfare policies (J68) |
| US projected to grow younger than Europe (J11) | Changes in migration patterns (F22) |