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.