when absorbing high-skill (respectively, low-skill) migration. In this paper we first examine this hypothesis in a politico … arise because the skill composition of migration is itself affected by the generosity of the welfare state …

of migration. We argue that the differences between the U.S. and the EU - the degree of coordination among the member …

labor migration, that may nullify the "race to the bottom" hypothesis. Labor migration is governed by net-of-tax factor … into account the effect of taxes and migration on factor rewards and the fiscal burden imposed by migration on the decisive … state member state), with tax financed benefits which is able to control the volume and the skill-composition of migration …

In a static setup, migration of unskilled labor may be resisted by the entire native-born population because, being …-as-you-go pension, an important pillar of the welfare state, the dynamics are such that migration is beneficial to low and high income … holds even though the migrants are net consumers of the pension system; they give to it less than they take from it. The pro-migration …

Migration of young workers (as distinct from retirees), even when driven in by the generosity of the welfare state …, slows down the trend of increasing dependency ratio. But, even though low-skill migration improves the dependency ratio, it … estimate the fiscal burden that low-skill migration imposes on the fiscal system. However an important message of this paper is …

Just like any trade activity in well-functioning markets, migration tends to enhance the efficiency of the allocation … of resources. With non-distortionary income distribution policy instruments which can compensate losers, migration … wages are rigid, migration exacerbates imperfections in the market. Consequently, it may lead to losses to the established …