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Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization

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Author Info
Alexander Kemnitz ()

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Abstract

This paper investigates the effect of labor immigration on public pensions when wage setting by a centralized trade union leads to unemployment. It is shown that immigration improves the financial soundness of pay-as-you-go pensions if and only if it diminishes total employment. This occurs if the absolute value of the elasticity of labor demand exceeds the unemployment rate.

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File URL: http://www.cesifo-group.de/DocCIDL/cesifo1_wp1525.pdf
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Publisher Info
Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number CESifo Working Paper No. 1525.

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Date of creation: 2005
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Handle: RePEc:ces:ceswps:_1525

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Related research
Keywords: immigration public pensions trade union

Other versions of this item:

Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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  1. Devereux, Michael B. & Lockwood, Ben, 1991. "Trade unions, non-binding wage agreements, and capital accumulation," European Economic Review, Elsevier, vol. 35(7), pages 1411-1426, October. [Downloadable!] (restricted)
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  2. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000. "The Political Economy of Social Security," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  3. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 102(3), pages 463-79, June. [Downloadable!] (restricted)
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  4. Irmen, Andreas & Wigger, Berthold, 2001. "Trade Union Objectives and Economic Growth," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  5. Kjetil Storesletten, . "Sustaining Fiscal Policy Through Immigration," Homapage Papers _005, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  6. Razin, Assaf & Sadka, Efraim, 1995. "Resisting Migration: Wage Rigidity and Income Distribution," American Economic Review, American Economic Association, vol. 85(2), pages 312-16, May. [Downloadable!] (restricted)
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  7. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October. [Downloadable!] (restricted)
  8. Fuest, Clemens & Thum, Marcel, 2000. "Welfare effects of immigration in a dual labor market," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 551-563, September. [Downloadable!] (restricted)
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  9. 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. [Downloadable!]
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  10. Sinn, Hans-Werner, 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," CEPR Discussion Papers 1734, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 773-797, March. [Downloadable!] (restricted)
  12. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Blackwell Publishing, vol. 105(1), pages 31-48, 03. [Downloadable!] (restricted)
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