Migration State and Welfare State: Competition vs. Coordination in an Economic Union
28 Pages Posted: 6 Oct 2015
Date Written: October 2015
We develop a political-economy model of economic union and compare the competion regime to the coordination regime. Key policy differences emerge between the two regimes: concerning the generosity of the welfare state and the skill composition of migration. We argue that the differences between the U.S. and the EU - the degree of coordination among the member states - contribute to the observed policy differences, as the model predicts.
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