Resource title

Migration, social standards and replacement incomes : how to protect low-income workers in the industrialized countries against the forces of globalization and market integration

Resource image

image for OpenScout resource :: Migration, social standards and replacement incomes : how to protect low-income workers in the industrialized countries against the forces of globalization and market integration

Resource description

This paper discusses how an industrialized country could defend the wages and social benefits of its unskilled workers against wage competition from immigrants. It shows that fixing social standards harms the workers and that fixing social replacement incomes implies migration into unemployment. Defending wages with replacement incomes brings about first-order efficiency losses that outweigh the budget cost to the government. By contrast, wage subsidies involve much smaller welfare losses. While the exclusion of migrants from a national replacement program does not improve the situation, the (temporary) exclusion of migrants from a national subsidy program makes it possible to avoid a distortion of the migration pattern.

Resource author

Hans-Werner Sinn

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18903

Resource license

Adapt according to the presented license agreement and reference the original author.