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.

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 open access book explores the role of family, public, market and third sector welfare provision for individual and households’ decisions regarding geographical mobility. It challenges the state-centred approach in research on welfare and migration by emphasising migrants’ own reflections and experiences. It asks whether and in which ways different welfare concerns are part of migrants’ decisions regarding (or aspirations for) mobility. Employing a transnational and a translocal perspective, the book addresses different forms of geographical mobility, such as immigration, emigration, and re-migration, circular and return migration. By bringing in empirical findings from across a variety of Western and non-Western contexts, the book challenges the Eurocentric focus in current debates and contributes to a more nuanced and more integrated global account of the welfare-migration nexus.

This timely and original book explores new migration challenges such as asylum seekers and Europe's increasingly restrictive immigration policies.

Analysing two major surveys of 14 different migrant groups connected to Danish register data, this insightful book explores what migrants think of the welfare state. It investigates the question of whether migrants assimilate to the ideas of extensive state intervention in markets and families or if they retain the attitudes and values that are prevalent in their countries of origin.

Immigration and Welfare avoids simplistic and unhelpful notions of the 'threat' of immigration to analyse the effects of immigration on national welfare states in an integrating Europe. It explores new migration challenges, such as asylum seekers and Europe's increasingly restrictive immigration policies, and looks at the implications of such debates for immigrant and immigrant-origin communities across Europe.

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 statefacing 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 acrossthe 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 analysisof 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 fordiversity 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 implyconvergence 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.