An analysis of the welfare state from a political economy perspective that examines the effects of aging populations, migration, and globalization on industrialized economies. In The Decline of the Welfare State, Assaf Razin and Efraim Sadka use a political economy framework to analyze the effects of aging populations, migration, and globalization on the deteriorating system of financing welfare state benefits as we know them. Their timely analysis, supported by a unified theoretical framework and empirical findings, demonstrates how the combined forces of demographic change and globalization will make it impossible for the welfare state to maintain itself on its present scale. In much of the developed world, the proportion of the population aged 60 and over is expected to rise dramatically over the coming years—from 35 percent in 2000 to a projected 66 percent in 2050 in the European Union and from 27 percent to 47 percent in the United States—which may necessitate higher tax burdens and greater public debt to maintain national pension systems at current levels. Low-skill migration produces additional strains on welfare-state financing because such migrants typically receive benefits that exceed what they pay in taxes. Higher capital taxation, which could potentially be used to finance welfare benefits, is made unlikely by international tax competition brought about by globalization of the capital market. Applying a political economy model and drawing on empirical data from the EU and the United States, the authors draw an unconventional and provocative conclusion from these developments. They argue that the political pressure from both aging and migrant populations indirectly generates political processes that favor trimming rather than expanding the welfare state. The combined pressures of aging, migration, and globalization will shift the balance of political power and generate public support from the majority of the voting population for cutting back traditional welfare state benefits.

This book is about three key dimensions in economics—globalization, migration and the welfare state—that are of enduring interest. These issues are particularly important to consider at the present moment given the strains posed by the pandemic: there is at least a temporary setback to trade-globalization and migration, and the cost of fighting the pandemic will strain the ability of governments to provide welfare state services in a style and scope to which many of their citizens have become accustomed. The book explains the changing function of the welfare state in the presence of intensified globalization, or de-globalization, forces. The welfare state’s policy-maker attitudes toward openness and migration depend on open-economy fundamentals, and the income class it represents. The author demonstrates the interactions between migration, globalization and macroeconomic policy in practice, using real-world unique episodes, with Israel deemed as well-functioning trifecta, and the US and Europe as imperfectly functioning trifecta.

Nobel laureate economist Milton Friedman once noted that free immigration cannot coexist with a welfare state. A welfare state with open borders might turn into a haven for poor immigrants, which would place such a fiscal burden on the state that native-born voters would support less-generous benefits or restricted immigration, or both. And yet a welfare state with an aging population might welcome young skilled immigrants. The preferences of the native-born population toward migration depend on the skill and age composition of the immigrants, and migration policies in a political-economy framework may be tailored accordingly. This book examines how social benefits-immigrations political economy conflicts are resolved, with an empirical application to data from Europe and the developed countries, integrating elements from population, international, public, and political economics into a unified static and dynamic framework. Using a static analytical framework to examine intra-generational distribution, the authors first focus on the skill composition of migrants in both free and restricted immigration policy regimes, drawing on empirical research from EU-15 and non-EU-15 states. The authors then offer theoretical analyses of similar issues in dynamic overlapping generations settings, studying not only intragenerational but also intergenerational aspects, including old-young dependency ratios and skilled-unskilled conflicts. Finally, they examine overall gains from or costs of migration in both host and source countries and the race to the bottom argument of tax competition between states in the presence of free migration.

"The Mediterranean in the Age of Globalization is a welcome corrective to the tendency to present globalization as a homogenous concept, and the failure to describe how it operates in specific regions. Ribas-Mateos examines globalization and migration across the Mediterranean, using an innovative, integrated framework so as to map social places by describing how social, political, cultural, and economic forces are embedded within a globalizing environment.The author articulates an original and compelling narrative, mapping the Mediterranean as a global place where international and regional forces are intertwined in multiple threads. In doing so, she identifies two key components of globalization--affecting specifically forms of welfare and issues of mobility--in the context of a weakening European welfare state and the relocation and reinforcement of Mediterranean borders. Nine Mediterranean cities are investigated as ""gateway"" cities, which shape two major effects of globalization: welfare and mobility. The book challenges conventional North-South perspectives, and focuses and systematizes the way international migration should be conceptualized.The originality of the book results from the author's fieldwork, which is rich in descriptive detail, and from a theory centered around global perspectives. Seven case studies in Southern Europe--Algeciras, Athens, Barcelona, Lisbon, Naples, Turin, and Thrace--deal with issues related to migration and the welfare state. She also includes two ethnographies that represent two Mediterranean gateways in the North-South Mediterranean division: Tangiers (in Morocco) and Durres (in Albania), which are mapped as border-cities in the global Mediterranean context. Because of its intrinsically multidisciplinary nature, this superb volume will be of particular interest to academics and social science researchers as well as policymakers and international agencies."

Will immigration undermine the welfare state? Trust beyond Borders draws on public opinion data and case studies of Germany, Sweden, and the United States to document the influence of immigration and diversity on trust, reciprocity, and public support for welfare programs. Markus M. L. Crepaz demonstrates that we are, at least in some cases, capable of trusting beyond borders: of expressing faith in our fellow humans and extending help without regard for political classifications. In Europe, the welfare state developed under conditions of relative homogeneity that fostered high levels of trust among citizens, while in America anxiety about immigration and diversity predated the emergence of a social safety net. Looking at our new era of global migration, Crepaz traces the renewed debate about "us" versus "them" on both sides of the Atlantic and asks how it will affect the public commitment to social welfare. Drawing on the literatures on immigration, identity, social trust, and the welfare state, Trust beyond Borders presents a novel analysis of immigration's challenge to the welfare state and a persuasive exploration of the policies that may yet preserve it. "Crepaz contributes much to our knowledge about the link between immigration and social welfare, certainly one of the central issues in current national and international politics." ---Stuart Soroka, Associate Professor of Political Science and William Dawson Scholar, McGill University "Finally! A book that challenges the growing view that ethnic diversity is the enemy of social solidarity. It addresses an issue of intense debate in Western nations; it takes dead aim at the theoretical issues at the center of the controversy; it deploys an impressive array of empirical evidence; and its conclusions represent a powerful corrective to the current drift of opinion. Trust beyond Borders will rank among the very best books in the field." ---Keith Banting, Queen's Research Chair in Public Policy, Queen's University "Do mass immigration and ethnic diversity threaten popular support for the welfare state? Trust beyond Borders answers no. Marshaling an impressive array of comparative opinion data, Crepaz shows that countries with high levels of social trust and universal welfare state arrangements can avoid the development of the welfare chauvinism that typically accompanies diversity." ---Gary Freeman, Professor and Department Chair, Department of Government, University of Texas at Austin Markus M. L. Crepaz is Professor in the Department of International Affairs at the University of Georgia and Associate Director of the Center for the Study of Global Issues (GLOBIS).

Migration presents a stark policy dilemma. Research repeatedly confirms that migrants, their families back home, and the countries that welcome them experience large economic and social gains. Easing immigration restrictions is one of the most effective tools for ending poverty and sharing prosperity across the globe. Yet, we see widespread opposition in destination countries, where migrants are depicted as the primary cause of many of their economic problems, from high unemployment to declining social services. Moving for Prosperity: Global Migration and Labor Markets addresses this dilemma. In addition to providing comprehensive data and empirical analysis of migration patterns and their impact, the report argues for a series of policies that work with, rather than against, labor market forces. Policy makers should aim to ease short-run dislocations and adjustment costs so that the substantial long-term benefits are shared more evenly. Only then can we avoid draconian migration restrictions that will hurt everybody. Moving for Prosperity aims to inform and stimulate policy debate, facilitate further research, and identify prominent knowledge gaps. It demonstrates why existing income gaps, demographic differences, and rapidly declining transportation costs mean that global mobility will continue to be a key feature of our lives for generations to come. Its audience includes anyone interested in one of the most controversial policy debates of our time.

This book brings together two major trends influencing economic and social life: population ageing on the one side, and migration on the other. Both have assumed increasing importance over the course of the 20th and into the 21st century. The book offers a unique interdisciplinary perspective on the challenges posed by the globalisation of the life course to welfare states’ old age and family policies. Through a variety of case studies, it covers a wide range of migration scenarios: those who migrate in later life; migrants from earlier years who age in place; and old people who hire migrant caregivers. It shows how both local and global economic inequalities intersect to frame interactions between ageing, migration, and family support. Across a wide variety of situations, it highlights that migration can both create risks for older people, but also serve as an answer to ageing-related social, economic, and health risks. The book explores tensions between national and global contexts in experiences of migration across the life course. As such this book offers a fascinating read to scholars, students, practitioners, and policy makers in the fields of aging, migration, life course, and population health.