Migration, Social Security, and Economic Growth
AbstractThis paper studies the effect of population aging on economic performance in an overlapping-generations model with international migration. Fertility is endogenized so that immigrants and natives can have different fertility rates. Fertility is an important determinant to the tax burden of social security since it affects the quantity and quality of future tax payers. We find that introducing immigrants into the economy can reduce the tax burden of social security. If life expectancy (or the replacement ratio) is high enough, the growth rate of GDP per worker for an economy with international migration will be higher than for a closed economy. Regarding migration policies, our numerical results indicate that economic growth rate of GDP per worker will first decrease then increase as the flow of immigrants increases. Increasing the quality of immigrants will enhance economic growth.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30251.
Date of creation: 2011
Date of revision:
Economic growth; Fertility; Migration; Social security.;
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
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-AGE-2011-04-30 (Economics of Ageing)
- NEP-ALL-2011-04-30 (All new papers)
- NEP-DEV-2011-04-30 (Development)
- NEP-DGE-2011-04-30 (Dynamic General Equilibrium)
- NEP-MIG-2011-04-30 (Economics of Human Migration)
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