DP10127 Migration and Welfare State: Why is America Different from Europe?
|Author(s):||Assaf Razin, Efraim Sadka|
|Publication Date:||September 2014|
|Keyword(s):||Fiscal and Migration Competition, Fiscal and Migration Coordination|
|JEL(s):||F22, H23, J11|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=10127|
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.