Migration State and Welfare State: Competition vs. Coordination in an Economic Union
NBER Working Paper No. 21606
We develop a political-economy model of economic union and compare the competion regime to the coordination regime. Key policy differences emerge between the two regimes: concerning the generosity of the welfare state and the skill composition of migration. We argue that the differences between the U.S. and the EU - the degree of coordination among the member states - contribute to the observed policy differences, as the model predicts.
Document Object Identifier (DOI): 10.3386/w21606
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