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The Role of Immigration in the Retirement Age Reform : A Theoretical Analysis

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  • Lagos Francisco

    ()
    (University of Granada)

  • Lacomba Juan

    ()
    (University of Granada)

Abstract

This paper examines the role played by the low-skilled immigrant labor force in countries aiming to reform their public pensions systems by postponing the pensionable age. With an overlapping-generations model in continuous time and a fully redistributive pension scheme, the arrival of immigrants affects the retirement benefits of the host population in a different manner according to whether they share or not pension benefits. Our results suggest that governments attempting to delay the legal retirement age should take into account the effect of immigration on the optimal retirement age of native individuals.

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File URL: http://www.degruyter.com/view/j/bejeap.2005.5.issue-1/bejeap.2005.5.1.1447/bejeap.2005.5.1.1447.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 5 (2005)
Issue (Month): 1 (September)
Pages: 1-20

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Handle: RePEc:bpj:bejeap:v:topics.5:y:2005:i:1:n:14

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Cited by:
  1. Juan Lacomba & Francisco Lagos, 2006. "Reinforcing the Link Between Contributions and Pensions: The Effect of the Population Aging," International Advances in Economic Research, Springer, vol. 12(4), pages 530-539, November.
  2. Krieger, Tim, 2005. "Renten und Zuwanderung: Ein Überblick über neue Ergebnisse der Forschung," Arbeitspapiere der Nordakademie 2005-04, Nordakademie - Hochschule der Wirtschaft.
  3. Juan A. Lacomba & Francisco Lagos, 2010. "Immigration and Pension Benefits in the Host Country," Economica, London School of Economics and Political Science, vol. 77(306), pages 283-295, 04.
  4. Tim Krieger, 2008. "Public pensions and return migration," Public Choice, Springer, vol. 134(3), pages 163-178, March.

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