Abstract
This chapter asks how migration might affect the economies of European welfare states. The welfare state is put in the perspective of the refugee crisis that Europe has experienced since 2015. The chapter explores the economic costs and benefits that migration can generate against the background of comprehensive welfare ambitions and economic redistribution in many European countries. Large-scale asylum-based immigration often entails economic costs for the recipient country, at least initially, but the authors also show that immigrants often contribute to economic development through innovation and new networks. Here, the authors emphasize that an effective integration policy is critical to national economic performance, as well as the future scope and design of welfare policies. One of the main issues brought up in the chapter is whether the most expansive welfare states in Europe will be able to maintain their universal nature or whether welfare entitlements must somehow be differentiated. Consequently, there is substantial policy scope to shape the ultimate outcome of higher immigration.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
On institutional competition in the EU, see Wihlborg and Khoury (2018).
References
Aldén, M., & Hammarstedt, L. (2016). Flyktinginvandring: Sysselsättning, förvärvsinkomster och offentliga finanser. Rapport till Finanspolitiska rådet. 2016: 1.
Borjas, G. J. (1999). Immigration and Welfare Magnets. Journal of Labor Economics, 17(4), 607–637.
Borjas, G. J. (2013). Immigration and the American Worker. Center for Immigration Studies.
Brezis, E. S., & Krugman, P. R. (1996). Immigration, Investment, and Real Wages. Journal of Population Economics, 9(1), 83–93.
Chatham House. (2017). What Do Europeans Think About Muslim Immigration? Retrieved October 2, 2018, from https://www.chathamhouse.org/expert/comment/what-do-europeans-think-about-muslim-immigration#.
Ekberg, J. (2009). Invandringen och de offentliga finanserna. Expertgruppen för studier i offentlig ekonomi. 2009: 3.
Eklund, J. (Ed.). (2016). Immigration, Economic Integration and Entrepreneurship. Swedish Economic Forum Report 2016. Swedish Entrepreneurship Forum.
Foged, M., & Peri, G. (2016). Immigrants’ Effect on Native Workers: New Analysis on Longitudinal Data. American Economic Journal: Applied Economics, 8(2), 1–34.
Hatzigeorgiou, A., & Lodefalk, M. (2015). Trade, Migration and Integration: Evidence and Policy Implications. The World Economy, 38(12), 2013–2048.
Kancs, A., & Lecca, P. (2017). Long Term Social, Economic and Fiscal Effects of Immigration into the EU: The Role of Integration Policy. Joint Research Centre Working Papers in Economics and Finance. 2017: 4.
Kerr, W. R., & Lincoln, W. L. (2010). The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention. Journal of Labor Economics, 28(3), 473–508.
Krugman, P. R. (2010, April 26). The Curious Politics of Immigration. The New York Times. Retrieved October 2, 2018, from https://krugman.blogs.nytimes.com/2010/04/26/the-curious-politics-of-immigration/.
Lazear, E. P. (2017). Why Are Some Immigrant Groups More Successful Than Others?. National Bureau of Economic Research working paper. 2017: 23548.
NOS. (2016). Timmermans: meer dan helft vluchtelingen heeft economisch motief. Retrieved October 2, 2018, from https://nos.nl/artikel/2082786-timmermans-meer-dan-helft-vluchtelingen-heeft-economisch-motief.html.
OECD. (2010). Open for Business: Migrant Entrepreneurship in OECD Countries. OECD Publishing. Retrieved October 2, 2018, from https://doi.org/10.1787/9789264095830-en.
OECD. (2018). National Accounts of OECD Countries: General Government Accounts 2017. OECD Publishing. Retrieved October 2, 2018, from https://doi.org/10.1787/na_gga-2018-en.
Peri, G., & Sparber, C. (2009). Task Specialization, Immigration, and Wages. American Economic Journal: Applied Economics, 1(3), 135–169.
Ruist, J. (2018). The Prosperity Gap and the Free Movement of Workers. In U. Bernitz, M. Mårtensson, L. Oxelheim, & T. Persson (Eds.), Bridging the Prosperity Gap in the EU: The Social Challenge Ahead. Cheltenham, UK: Edward Elgar Publishing.
Sanandaji, T. (2016). Massutmaningen. Kuhzad Media.
Wihlborg, C., & Khoury, S. (2018). Trust in the Euro and the EU’s Banking Union after the Financial Crisis. In A. Bakardijeva Engelbrekt, N. Bremberg, A. Michalski, & L. Oxelheim (Eds.), Trust in the European Union in Challenging Times. Cham, Switzerland: Palgrave.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Eklund, J.E., Braunerhjelm, P. (2020). Migration and the European Welfare State in a Changing World Order. In: Bakardjieva Engelbrekt, A., Bremberg, N., Michalski, A., Oxelheim, L. (eds) The European Union in a Changing World Order. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18001-0_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-18001-0_7
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-18000-3
Online ISBN: 978-3-030-18001-0
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)