Abstract
The economic consequences of immigration from a less developed country (LDC) to a developed country (DC) are potentially very advantageous for both the immigrant and the recipient country. Cultural differences and the institutions of the DC can cause both a shortfall in and a redistribution of the potential advantage through two mechanisms: the selection of immigrants and the incentives for labor market participation. These effects are examined in three stylized cases: a Dubai-like guest worker society, a U.S.-like immigrant society, and a Nordiclike tax-based welfare state. The Dubai-like case is closest to the potential, while the Nordic-like evolved welfare case deviates the most. Major institutional changes will be required for the latter to better realize the immigration benefit potential.
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Chand, S.K., Paldam, M. (2006). Some Economics of Immigration from an LDC to a DC: Stressing the Case of a Nordic Welfare State. In: Langhammer, R.J., Foders, F. (eds) Labor Mobility and the World Economy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-31045-7_10
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DOI: https://doi.org/10.1007/978-3-540-31045-7_10
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