Is free migration compatible with a European-style welfare state?

Expert report nr. 11

Publication date:
04 May 2008

Type:
Reports

Source:
Ministry of Education and Research

The Globalisation Council

Author:
Philippe Legrain

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The material is free of charge.

Summary

This report suggests ways of reconciling free migration with a generous welfare state. Taking Sweden as the point of departure, the author analyses to what extent rich-country welfare states act as magnets for migrants from poorer countries as well as the net impact of immigration on public finances. The claim that greater diversity reduces political support for the welfare state is challenged, while the broader economic impact of free migration is emphasized. The author argues that free migration may pose challenges to a European-style welfare state but that the two are far from incompatible. Rather, by boosting economic growth, free migration could actually make the welfare state more affordable.