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Public Pensions and Immigration Policy in a Democracy

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Author Info
 Scholten, Ulrich
Thum, Marcel

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Abstract

The paper analyzes the link between the public pension system and the immigration policy. In a pay-as-you-go system, the incentives for immigration vary significantly between individuals at different lifetime periods. In the framework of an overlapping generations model, the authors show that the median voter's choice in general leads to inefficient levels of immigration. The median voter neglects the effects of the externalities within the pension system on other generations. An immigration policy that is not affected by the median voter's choice but instead is constitutionally determined will avoid welfare losses. The expected lifetime income of each generation can be increased by applying a rule of steady immigration. Copyright 1996 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 87 (1996)
Issue (Month): 3-4 (June)
Pages: 347-61
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Handle: RePEc:kap:pubcho:v:87:y:1996:i:3-4:p:347-61

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  1. Karin Mayr, 2007. "Immigration and income redistribution: A political economy analysis," Public Choice, Springer, vol. 131(1), pages 101-116, April. [Downloadable!] (restricted)
  2. Gordon H. Hanson, 2008. "The Economic Consequences of the International Migration of Labor," NBER Working Papers 14490, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Tim Krieger, 2004. "Public pensions and immigration policy when voters are differently skilled," Public Economics 0411006, EconWPA. [Downloadable!]
  4. Tamura, Yuji, 2004. "Referendum-Led Immigration Policy In The Welfare State," The Warwick Economics Research Paper Series (TWERPS) 713, University of Warwick, Department of Economics. [Downloadable!]
  5. Alexander Haupt & Wolfgang Peters, 2001. "Voting on Public Pensions With Hand and Feet: How Young Migrants Try to Escape From Gerontocracy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  6. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2008. "Do Interest Groups Affect US Immigration Policy?," CEPR Discussion Papers 6898, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Facchini, Giovanni, 2002. "Why Join a Common Market? The Political Economy of International Factor Mobility in a Multi-country Setting," Working Papers 02-0121, University of Illinois at Urbana-Champaign, College of Business. [Downloadable!]
  9. Tim Krieger, 2001. "Intergenerational Redistribution and Labor Mobility: A Survey," Departmental Discussion Papers 106, University of Goettingen, Department of Economics. [Downloadable!]
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  10. Tim Krieger, 2008. "Public pensions and return migration," Public Choice, Springer, vol. 134(3), pages 163-178, March. [Downloadable!] (restricted)
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  11. Giovanni Facchini & Anna Maria Mayda & Prachi Mishra, 2007. "Do Interest Groups Affect Immigration?," IZA Discussion Papers 3183, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Yuji Tamura, 2006. "Disagreement over the immigration of low-income earners in a welfare state," Journal of Population Economics, Springer, vol. 19(4), pages 691-702, October. [Downloadable!] (restricted)
  13. Facchini, Giovanni & Testa, Cecilia, 2008. "Who is Against a Common Market?," CEPR Discussion Papers 6847, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
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