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Immigration and Pension Benefits in the Host-country

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Abstract

This paper examines the role that low-skilled immigrant labor force plays in determining the benefits of the public pension of the host population. With an overlapping-generations model in continuous time which allows to identify which groups of native population are better or worse off with immigration and a fully redistributive pension system, we find that the retirement benefits and hence the welfare levels of the host population are affected in a different way whether sharing or not pension benefits with immigrants. In this sense, the youngest local population may prefer, contrary to the oldest ones, a policy of closed borders.

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Bibliographic Info

Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/77.

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Length: 21 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:cea:doctra:e2004_77

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Keywords: Immigration; welfare; pension benefits.;

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References

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  1. Krieger, Tim, 2004. "Public pensions and immigration policy when voters are differently skilled," Arbeitspapiere der Nordakademie 2004-01, Nordakademie - Hochschule der Wirtschaft.
  2. Assaf Razin & Efraim Sadka, 1995. "Population Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262181606, December.
  3. Slobodan Djajić, 2003. "Assimilation of immigrants: Implications for human capital accumulation of the second generation," Journal of Population Economics, Springer, vol. 16(4), pages 831-845, November.
  4. Cremer, Helmuth & Pestieau, Pierre, 1998. "Social insurance, majority voting and labor mobility," Journal of Public Economics, Elsevier, vol. 68(3), pages 397-420, June.
  5. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
  6. 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.
  7. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000. " The Political Economy of Social Security," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 503-22, June.
  8. Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June.
  9. Tim Krieger, 2006. "Public pensions and return migration," Working Papers CIE 2, University of Paderborn, CIE Center for International Economics.
  10. Krieger, Tim, 2003. "Fertility Rates and Skill Distribution in Razin and Sadka's Migration-Pension Model: A Note," Discussion Papers in Economics 82, University of Munich, Department of Economics.
  11. Juan Antonio Lacomba & Francisco Miguel Lagos, 2005. "Population Aging and Legal Retirement Age," ThE Papers 05/16, Department of Economic Theory and Economic History of the University of Granada..
  12. Peter Diamond, 2004. "Social Security," American Economic Review, American Economic Association, vol. 94(1), pages 1-24, March.
  13. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  14. Krieger, Tim, 2003. " Voting on Low-Skill Immigration under Different Pension Regimes," Public Choice, Springer, vol. 117(1-2), pages 51-78, October.
  15. Razin, A. & Sadka, E., 1999. "Unskilled Migration: a Burden or a Boon for the Welfare State?," Papers 8-99, Tel Aviv.
  16. Lagos Francisco & Lacomba Juan, 2005. "The Role of Immigration in the Retirement Age Reform : A Theoretical Analysis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-20, September.
  17. Sinn, Hans-Werner, 2002. "EU enlargement and the future of the welfare state," Munich Reprints in Economics 19736, University of Munich, Department of Economics.
  18. Sheetal K. Chand & Martin Paldam, 2004. "The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state," Economics Working Papers 2004-4, School of Economics and Management, University of Aarhus.
  19. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
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Citations

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Cited by:
  1. Gurgen Aslanyan, 2012. "Immigration Control & Long-Run Population Welfare," CERGE-EI Working Papers wp453, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  2. Catia Batista & Janis Umblijs, 2013. "Migration, Risk Attitudes, and Entrepreneurship: Evidence from a Representative Immigrant Survey," CReAM Discussion Paper Series 1325, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Assaf Razin, 2013. "Migration into the Welfare State: Tax and Migration Competition," CESifo Working Paper Series 4230, CESifo Group Munich.
  4. Tim Krieger, 2006. "Public pensions and return migration," Working Papers CIE 2, University of Paderborn, CIE Center for International Economics.

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