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.

This book deals with a very important question from an economic and political perspective: immigration and the future of the Welfare State. While its focus is mostly theoretical, the theory is flexible enough to accommodate variants and extensions of a benchmark model that allow for dealing with specific contexts and increasingly complex issues. The book is very well structured -- each chapter clearly builds on the previous ones (which themselves build on previous work by the authors) and proceeds gradually. It starts with a basic set-up which is enriched sequentially with new ingredients (e.g., allowing for more heterogeneity in migrants' skills, in the type of welfare state considered -- Europe v. the United States, moving from a static to a dynamic framework).The book has three main parts. Part 1 develops a series of static models of immigration and the welfare state, starting with immigration as a determinant of the welfare state, following with reverse effects (the “welfare magnet” hypothesis) and, finally, ending with joint determination. Part 2 extends these models along the time dimension using overlapping-generations models. This is particularly welcome as this allows for an analysis of intergenerational effect, which nicely complements the intragenerational effects emphasized in the static analysis. These models also allow for introducing political economy considerations such as strategic voting, which is dealt with in a separate chapter. Lastly, Part 3 deals with the specific measurement of fiscal benefits and costs of (unskilled) immigration and considers how host countries (and later also source countries such as EU accession countries) can change their fiscal and migration policies when they compete to attract a larger pool of potential migrants.

The Swedish welfare state finds itself in the middle of two major upheavals: The impact of technology and immigration. Having taken in more refugees per capita than most other countries, the pillars of the welfare state are being shaken. Digital technologies are set to strengthen already existing trends towards job and wage polarization. This book explores how these trends are more pronounced due to the rigidity of the labor market and the comprehensiveness of tax-financed welfare services.

This book provides a major new examination of the current dilemmas of liberal anti-racist policies in European societies, linking two discourses that are normally quite separate in social science: immigration and ethnic relations research on the one hand, and the political economy of the welfare state on the other. The authors rephrase Gunnar Myrdal's questions in An American Dilemma with reference to Europe's current dual crisis - that of the established welfare state facing a declining capacity to maintain equity, and that of the nation state unable to accommodate incremental ethnic diversity. They compare developments across the European Union with the contemporary US experience of poverty, race, and class. They highlight the major moral-political dilemma emerging across the EU out of the discord between declared ideals of citizenship and actual exclusion from civil, political, and social rights. Pursuing this overall European predicament, the authors provide a critical scrutiny of the EU's growing policy involvement in the fields of international migration, integration, discrimination, and racism. They relate current policy issues to overall processes of economic integration and efforts to develop a European 'social dimension'. Drawing on case-study analysis of migration, the changing welfare state, and labour markets in the UK, Germany, Italy, and Sweden, the book charts the immense variety of Europe's social and political landscape. Trends of divergence and convergence between single countries are related to the European Union's emerging policies for diversity and social inclusion. It is, among other things, the plurality of national histories and contemporary trajectories that makes the European Union's predicament of migration, welfare, and citizenship different from the American experience. These reasons also account in part for why it is exceedingly difficult to advance concerted and consistent approaches to one of the most pressing policy issues of our time. Very few of the existing sociological texts which compare different European societies on specific topics are accessible to a broad range of scholars and students. The European Societies series will help to fill this gap in the literature, and attempt to answer questions such as: Is there really such a thing as a 'European model' of society? Do the economic and political integration processes of the European Union also imply convergence in more general aspects of social life, such a family or religious behaviour? What do the societies of Western Europe have in common with those further to the East? This series will cover the main social institutions, although not every author will cover the full range of European countries. As well as surveying existing knowledge in a manner useful to students, each book will also seek to contribute to our growing knowledge of what remains in many respects a sociologically unknown continent. The series editor is Colin Crouch.

Bringing together prominent scholars in the field, this Handbook provides an interdisciplinary exploration of the complex interrelationship between migration and welfare. Chapters further examine the effects of emigration on sending societies exploring issues such as the impact of remittances, diasporas, and skill deterioration as a result of human capital flight on capacity building and on economic and political development more generally.

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).

We develop a dynamic political-economic theory of welfare state and immigration policies, featuring three distinct voting groups: skilled workers, unskilled workers, and old retirees. The essence of inter - and intra-generational redistribution of a typical welfare system is captured with a proportional tax on labor income to finance a transfer in a balanced-budget manner. We provide an analytical characterization of political-economic equilibrium policy rules consisting of the tax rate, the skill composition of migrants, and the total number of migrants. When none of these groups enjoy a majority (50 percent of the voters or more), political coalitions will form. With overlapping generations and policy-determined influx of immigrants, the formation of the political coalitions changes over time. These future changes are taken into account when policies are shaped. Naturally, a lower rate of population growth (that is, an aging population) increases the political clout of the old (the left group). But it also increases the burden on the young (particularly, the skilled).