Migration-Regime Liberalization and Social Security: Political-Economy Effect
AbstractThe pay-as-you-go social security system, burdened by dwindling labour force, can benefit from immigrants, with birth rates that exceed the native-born birth rates. Thus, the social security system effectively provides an incentive to liberalize migration policy through a political-economy mechanism. The paper examines a dynamic political-economy mechanism through which the social security system influences the young decisive voter's attitudes in favour of a more liberal immigration regime. A Markov equilibrium with social security consists of a more liberal migration policy, than a corresponding equilibrium with no social security.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7310.
Date of creation: Jun 2009
Date of revision:
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Other versions of this item:
- Assaf Razin & Edith Sand, 2009. "Migration-Regime Liberalization and Social Security: Political-Economy Effect," CESifo Working Paper Series 2653, CESifo Group Munich.
- Assaf Razin & Edith Sand, 2009. "Migration-Regime Liberalization and Social Security: Political-Economy Effect," NBER Working Papers 15013, National Bureau of Economic Research, Inc.
- 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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