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This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of...
Persistent link: https://www.econbiz.de/10013218734
composition of immigrants under free migration is negative. The reason is that welfare state benefits attract unskilled migrants … generosity (and taxes) of the welfare state on the skill composition of migrants is positive if migration is controlled by policy … the skill-composition of migrants under free migration; but it exerts a more positive effect under controlled migration …
Persistent link: https://www.econbiz.de/10012758239
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 …
Persistent link: https://www.econbiz.de/10012764835
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 …
Persistent link: https://www.econbiz.de/10013139888
between skilled and unskilled migration rates. The main purpose of the paper is to assess the role of mobility restriction on … shaping the effect of the welfare state genrosity. In a free migration regime, the impact is expected to be negative on the … selective migration policies, favoring skilled migrants who tend to be net contributors to the fiscal system. We utilize the …
Persistent link: https://www.econbiz.de/10013119301
of migration. We argue that the differences between the U.S. and the EU - the degree of coordination among the member …
Persistent link: https://www.econbiz.de/10013014302
We develop a dynamic politico-economic theory of welfare state, featuring three groups of voters: skilled workers, unskilled workers, and old retirees. The welfare-state is modeled by a proportional tax on labor income to finance a demogrant in a balanced-budget manner to capture the essence of...
Persistent link: https://www.econbiz.de/10013226579
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 …
Persistent link: https://www.econbiz.de/10013213052
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 …
Persistent link: https://www.econbiz.de/10013244737
We develop a stylized EU-type model of a union consisting of rich, capital-abundant and high productivity countries, and poor, capital-scarce and low productivity countries. We address two main issues: the efficiency of tax competition and the effect of factor mobility on the size of the welfare...
Persistent link: https://www.econbiz.de/10013077970