This paper considers the prospects for successful implementation by governments of guest-worker programs that are based on an intended temporary presence of foreign workers. A means of enforcement of temporary presence is a penalty imposed for overstaying the permissible time period. Employers...

The social contract of the welfare state can be strained by the arrival of immigrants who receive welfare payments financed by citizens’ taxes. We show, however, that the presence of unemployed immigrants receiving welfare payments is consistent with social harmony. The social harmony, which...