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The Effects of Immigration Inflows on the Sustainability of the Italian Welfare States

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  • Flavia Coda Moscarola

    ()
    (Center for research on Pensions and Welfare Policies, Turin)

Abstract

This paper implements a set of generational accounts to estimate the impact of immigration on the sustainability of the Italian welfare state. Italians’ net tax-age profiles are reconstructed on the basis of surveys; most of the immigrants’ net tax-age profiles are reconstructed indirectly. According to our estimates immigration can only partly relieve the burden that current fiscal policy will put on future generations. In the baseline case immigrants’ total net taxes reduce the intergenerational imbalance by only 6 percentage points. Interestingly, immigration appears to be more effective in this regard if the immigrants stay in Italy until they die. However, immigration alone cannot restore long-term solvency. Fundamental reform is needed.

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Bibliographic Info

Paper provided by Center for Research on Pensions and Welfare Policies, Turin (Italy) in its series CeRP Working Papers with number 06.

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Length: 36 pages
Date of creation: Apr 2001
Date of revision:
Publication status: published in Politica Economica, n. 1, 2003
Handle: RePEc:crp:wpaper:06

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Related research

Keywords: Social security; immigration; generational accounts;

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Cited by:
  1. Sébastien Jean & Orsetta Causa & Miguel Jimenez & Isabelle Wanner, 2010. "Migration and labour market outcomes in OECD countries," OECD Journal: Economic Studies, OECD Publishing, vol. 2010(1), pages 1-34.
  2. Willi Leibfritz & Paul O'Brien & Jean-Christophe Dumont, 2003. "Effects of Immigration on Labour Markets and Government Budgets - An Overview," CESifo Working Paper Series 874, CESifo Group Munich.
  3. Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153, CPB Netherlands Bureau for Economic Policy Analysis.

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