Migration-Regime Liberalization and Social Security: Political-Economy Effect
AbstractThe pay-as-you-go social security system, which suffers from dwindling labor force, can benefit from immigrants with birth rates that exceed the native-born birth rates in the host country. Thus, a social security system provides effectively an incentive to liberalize migration policy. The paper examines a political- economy, inter-generational, mechanism through which the social security system influences voter attitudes in favor of more liberal immigration regime. We demonstrate that the Markov equilibrium, with social security, consists of more liberal migration policies, than the corresponding Markov equilibrium with no social security.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2653.
Date of creation: 2009
Date of revision:
Other versions of this item:
- Assaf Razin & Edith Sand, 2009. "Migration-Regime Liberalization and Social Security: Political-Economy Effect," NBER Working Papers 15013, National Bureau of Economic Research, Inc.
- Razin, Assaf & Sand, Edith, 2009. "Migration-Regime Liberalization and Social Security: Political-Economy Effect," CEPR Discussion Papers 7310, C.E.P.R. Discussion Papers.
- 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
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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