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Public pensions and international migration: some clarifications and illustrative results

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  • MUNZ, SONJA
  • WERDING, MARTIN

Abstract

Immigration is often thought of as a measure suited to mitigate the fiscal consequences of demographic ageing for unfunded public pension schemes. Building on Sinn (1997), the paper explores in some more detail the conditions under which immigrants are a net fiscal asset for national pension budgets not only on a temporary basis i.e., as long as they are paying contributions and before they start drawing benefits but also in the long run. Illustrative simulations are provided for the cases of Germany, Italy, the UK, and the US. It turns out that the value of immigrants depends on the nature of the pension scheme (Bismarck vs Beveridge). Also, it is strongly affected by the immigrants characteristics in terms of skills and fertility. Furthermore, effects differ substantially for the cases of temporary vs permanent migration.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Journal of Pension Economics and Finance.

Volume (Year): 4 (2005)
Issue (Month): 02 (July)
Pages: 181-207

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Handle: RePEc:cup:jpenef:v:4:y:2005:i:02:p:181-207_00

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Cited by:
  1. Mariangela Bonasia & Rita De Siano, 2012. "Population Dynamics and Regional Social Security Sustainability in Italy," Discussion Papers 14_2012, CRISEI, University of Naples "Parthenope", Italy.
  2. Volker Meier & Martin Werding, 2010. "Ageing and the welfare state: securing sustainability," Oxford Review of Economic Policy, Oxford University Press, vol. 26(4), pages 655-673, Winter.
  3. Martin Werding & Stuart McLennan, 2012. "International Portability of Health-Cost Cover: Mobility, Insurance, and Redistribution," CESifo Working Paper Series 3952, CESifo Group Munich.
  4. Wido Geis & Silke Uebelmesser & Martin Werding, 2008. "How do Migrants Choose their Destination Country? An Analysis of Institutional Determinants," CESifo Working Paper Series 2506, CESifo Group Munich.
  5. Werding, Martin & McLennan, Stuart, 2011. "International portability of health-cost coverage : concepts and experience," Social Protection Discussion Papers 63929, The World Bank.

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