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The Economy of Undocumented Migration: Taxation and Access to Welfare

Tjernberg, Mats LU (2010) In European Journal of Migration and Law 12(2). p.149-171
Abstract
A strict division between the formal economy and the informal economy cannot be made and every economic actor has in certain situations a propensity to engage in informal economic activities. The formal, as well as informal economy may lead to economic growth which is essential for a broad welfare policy, under which social benefits are categorized. A person's economic contribution to a state should entail some possibility of getting economic and social benefits from it. The article shows that a person, who is liable to tax in a state, by staying in its territory, should not be excluded from the social welfare system. There is often a lack of congruence between tax liability and right to residence-based social benefits. A typical example... (More)
A strict division between the formal economy and the informal economy cannot be made and every economic actor has in certain situations a propensity to engage in informal economic activities. The formal, as well as informal economy may lead to economic growth which is essential for a broad welfare policy, under which social benefits are categorized. A person's economic contribution to a state should entail some possibility of getting economic and social benefits from it. The article shows that a person, who is liable to tax in a state, by staying in its territory, should not be excluded from the social welfare system. There is often a lack of congruence between tax liability and right to residence-based social benefits. A typical example is that of undocumented migrants. Welfare policy is to a large extent governed by a mix of rules linked to taxation, social contributions and social benefits. It could be expected that the policy be well devised, leading to well-coordinated systems. European states having a social policy with roots in a Beveridge model (such as Sweden), should be obliged to integrate undocumented migrants in their social benefit system. Regardless of any declared income they should be part of basic social benefits scheme by virtue of territoriality alone. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
informal economy, undocumented migrants, taxation, social benefits
in
European Journal of Migration and Law
volume
12
issue
2
pages
149 - 171
publisher
Brill Academic Publishers
external identifiers
  • wos:000277062100002
  • scopus:77956358540
ISSN
1388-364X
DOI
10.1163/157181610X496858
language
English
LU publication?
yes
id
68ff2d30-45f7-48dc-8c58-908a2c4ae659 (old id 1601832)
date added to LUP
2010-05-20 10:07:43
date last changed
2018-05-29 09:38:14
@article{68ff2d30-45f7-48dc-8c58-908a2c4ae659,
  abstract     = {A strict division between the formal economy and the informal economy cannot be made and every economic actor has in certain situations a propensity to engage in informal economic activities. The formal, as well as informal economy may lead to economic growth which is essential for a broad welfare policy, under which social benefits are categorized. A person's economic contribution to a state should entail some possibility of getting economic and social benefits from it. The article shows that a person, who is liable to tax in a state, by staying in its territory, should not be excluded from the social welfare system. There is often a lack of congruence between tax liability and right to residence-based social benefits. A typical example is that of undocumented migrants. Welfare policy is to a large extent governed by a mix of rules linked to taxation, social contributions and social benefits. It could be expected that the policy be well devised, leading to well-coordinated systems. European states having a social policy with roots in a Beveridge model (such as Sweden), should be obliged to integrate undocumented migrants in their social benefit system. Regardless of any declared income they should be part of basic social benefits scheme by virtue of territoriality alone.},
  author       = {Tjernberg, Mats},
  issn         = {1388-364X},
  keyword      = {informal economy,undocumented migrants,taxation,social benefits},
  language     = {eng},
  number       = {2},
  pages        = {149--171},
  publisher    = {Brill Academic Publishers},
  series       = {European Journal of Migration and Law},
  title        = {The Economy of Undocumented Migration: Taxation and Access to Welfare},
  url          = {http://dx.doi.org/10.1163/157181610X496858},
  volume       = {12},
  year         = {2010},
}