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Public pensions and return migration

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  • Tim Krieger

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Abstract

In a median-voter framework with pensions and immigration we show that too few unskilled immigrants are allowed into the country because the unskilled native median voter is concerned with negative effects on his wage. He does not consider the positive effects to other groups in society. When return migration is allowed for, the median voter is more willing to accept immigration because he can shift some of the burden to future generations.

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File URL: http://hdl.handle.net/10.1007/s11127-007-9213-6
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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 134 (2008)
Issue (Month): 3 (March)
Pages: 163-178

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Handle: RePEc:kap:pubcho:v:134:y:2008:i:3:p:163-178

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Migration; Return migration; Unfunded pension systems; Voting; H55; J61; D72;

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References

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  1. Hans-Werner Sinn, 1997. "The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal for a Partial Transition to a Funded System," NBER Working Papers 6229, National Bureau of Economic Research, Inc.
  2. Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June.
  3. Martin Werding, 2003. "After Another Decade of Reform: Do Pension Systems in Europe Converge?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 1(1), pages 11-16, October.
  4. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-79, June.
  5. 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.
  6. Christian Dustmann, 2003. "Children and return migration," Journal of Population Economics, Springer, vol. 16(4), pages 815-830, November.
  7. Tim Krieger, 2004. "Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note," Journal of Population Economics, Springer, vol. 17(1), pages 177-182, February.
  8. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, 03.
  9. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  10. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
  11. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  12. Francisco Lagos & Juan Lacomba, 2005. "The Role of Immigration in the Retirement Age Reform : A Theoretical Analysis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 0(1), pages 14.
  13. Krieger, Tim, 2003. " Voting on Low-Skill Immigration under Different Pension Regimes," Public Choice, Springer, vol. 117(1-2), pages 51-78, October.
  14. Friedrich Breyer & Klaus Stolte, 2000. "Demographic Change, Endogenous Labor Supply and the Political Feasibility of Pension Reform," Discussion Papers of DIW Berlin 202, DIW Berlin, German Institute for Economic Research.
  15. Leers, Theo & Meijdam, Lex & Verbon, Harrie A. A., 2004. "Ageing, migration and endogenous public pensions," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 131-159, January.
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Citations

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Cited by:
  1. Tim Krieger & Thomas Lange, 2012. "Education, Life Expectancy and Pension Reform," Hacienda Pública Española, IEF, vol. 202(3), pages 31-55, September.
  2. Muñoz de Bustillo, Rafael & Antón, José-Ignacio, 2009. "Immigration and Social Benefits in a Mediterranean Welfare State: The Case of Spain," MPRA Paper 13849, University Library of Munich, Germany.
  3. Tito Boeri & Guido Tabellini, 2005. "Does Information Increase Political Support for Pension Reform?," Levine's Working Paper Archive 784828000000000244, David K. Levine.
  4. Facchini, Giovanni & Mayda, Anna Maria, 2008. "From individual attitudes towards migrants to migration policy outcomes: Theory and evidence," CEPR Discussion Papers 6835, C.E.P.R. Discussion Papers.
  5. Jana Tepperová & Stanislav Klazar, 2012. "The Impact Of Social Systems And Their Coordination On Economic Migration," Politická ekonomie, University of Economics, Prague, vol. 2012(4), pages 505-522.
  6. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
  7. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign Students and Migration to the United States," World Development, Elsevier, vol. 39(8), pages 1294-1307, August.

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