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Migration and Long-Term Fiscal Sustainability in Welfare Europe: A Case Study

Author

Listed:
  • Gerrit Manthei
  • Bernd Raffelhüschen

Abstract

The recent high immigration rates in Europe pose challenges to host countries. How does the magnitude of mass migration affect a country's fiscal sustainability and its welfare system? This case study uses generational accounting to analyze potential repercussions of migration on the sustainability of public budgets. As this paper considers the more recent assumptions of migration and economic development, it provides clear evidence that fiscal sustainability of welfare systems in Europe is likely to be negatively affected by nonselective migration of low-qualified workers. Our findings suggest the implementation of an all-European immigration policy similar to those in the US and Australia.

Suggested Citation

  • Gerrit Manthei & Bernd Raffelhüschen, 2018. "Migration and Long-Term Fiscal Sustainability in Welfare Europe: A Case Study," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 74(4), pages 446-461, December.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201812)74:4_446:malfsi_2.0.tx_2-j
    DOI: 10.1628/fa-2018-0014
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    Citations

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    Cited by:

    1. Gerrit Manthei, 2021. "The Long-Term Growth Impact of Refugee Migration in Europe: A Case Study," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(1), pages 50-58, January.
    2. Manthei, Gerrit, 2020. "The long-term growth impact of refugee migration in Europe: A case study," FZG Discussion Papers 71, University of Freiburg, Research Center for Generational Contracts (FZG).

    More about this item

    Keywords

    accounting; integration; fiscal sustainability; migration; welfare;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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