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The forces of the market and systems competition bring about economic and social convergence in Europe. There is no need for social policies at the EU level. Social harmonisation would distort migration flows and slow down the speed of economic convergence. National welfare states will be...
Persistent link: https://www.econbiz.de/10011507973
It is often argued that tax competition may lead to a 'race to the bottom'. This result may indeed hold in the case of factor mobility (such as capital). However, in this paper we emphasize the unique feature of labor migration, that may nullify the 'race to the bottom' hypothesis. Labor...
Persistent link: https://www.econbiz.de/10003974528
We provide evidence indicating that countries with well-developed social security systems do not necessarily face a trade-off between social spending and competitiveness. On average, countries that spend a lot on social needs score well in the competitiveness league. We investigate the...
Persistent link: https://www.econbiz.de/10011506440
We provide a normative analysis of endogenous student and worker mobility in the presence of diverging interests between universities and governments. Student mobility generates a university competition effect which induces them to overinvest in education, whereas worker mobility generates a...
Persistent link: https://www.econbiz.de/10009011793
A growing literature documents the existence of strategic political reactions to public expenditure in one jurisdiction on either neighboring or reference jurisdictions. The latter might give raise to downward expenditure spiral, or "race to the bottom". However, in ascertaining the empirical...
Persistent link: https://www.econbiz.de/10010479922
While the old systems competition took place with closed borders, globalisation has brought about a new type of systems competition that is driven by the mobility of factors of production. The new systems competition will likely imply the erosion of the European welfare state, induce a race to...
Persistent link: https://www.econbiz.de/10011408441
Germany is in a dilemma. Low wage competition via product and factor markets increases the demands on the welfare state, but increased systems competition in the context of international factor mobility reduces the possibilities of maintaining it. The welfare state has important allocative...
Persistent link: https://www.econbiz.de/10009781597
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....
Persistent link: https://www.econbiz.de/10011450583
This paper discusses a central element in globalization debate little addressed by economists, namely the interactions … at global, national, and community levels between globalization and societally based values. Social values refer to wider … stress on analytical comparative statics. Scenarios for how values can interact under globalization are discussed in the text. …
Persistent link: https://www.econbiz.de/10002756340
Persistent link: https://www.econbiz.de/10003463057