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Immigration and growth in an ageing economy - version 2

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  • Muysken, Joan

    ()
    (Department of Economics, Maastricht University)

  • Ziesemer, Thomas

    ()
    (UNU-MERIT and Department of Economics, Maastricht University)

Abstract

This paper argues that immigration can help to alleviate the burden ageing presents for the welfare states of most Western Economies. We develop a macroeconomic framework which deals with the impact of both ageing and immigration on economic growth. This is combined with a detailed model of the labour market, to include the interaction with low-skilled unemployment. The empirical relevance of some crucial model assumptions is shown to hold for the Netherlands, 1973 - 2009. The conclusions are that immigration will help to alleviate the ageing problem, as long as the immigrants will be able to participate in the labour force at least as much as the native population. Moreover, the better educated the immigrants are or become, the higher their contribution to growth will be.

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File URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-037.pdf
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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 037.

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Date of creation: 2011
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Handle: RePEc:unm:unumer:2011037

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Keywords: ageing; immigration; unemployment; skills;

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References

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Citations

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Cited by:
  1. Muysken, Joan & Ziesemer, Thomas, 2011. "The effect of net immigration on economic growth in an ageing economy: transitory and permanent shocks," MERIT Working Papers 055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Vallizadeh, Ehsan & Muysken, Joan & Ziesemer, Thomas, 2013. "Migration, unemployment and skill downgrading : a specific-factors approach," IAB Discussion Paper 201313, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Ding, Hong, 2012. "Economic growth and welfare state: a debate of econometrics," MPRA Paper 39685, University Library of Munich, Germany.
  4. Muysken, Joan & Vallizadeh, Ehsan & Ziesemer, Thomas, 2012. "The impact of Medium-Skilled immigration: A general equilibrium approach," MERIT Working Papers 055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Muysken, Joan & Vallizadeh, Ehsan & Ziesemer, Thomas, 2012. "Migration, Unemployment, and Over-qualification: A Specific Factors-Model Approach," EconStor Preprints 67479, ZBW - German National Library of Economics.
  6. Kosta Josifidis & John Hall & Valérie Berenger & Novica Supić, 2013. "Eastern Migrations vs Western Welfare States – (Un)Biased Fears," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 323-345, May.
  7. Ding, Hong, 2012. "Unemployment and Welfare State: What do the Data Tell Us?," MPRA Paper 41921, University Library of Munich, Germany.
  8. Mathijs Gerritsen & Jens Høj, 2013. "The Dutch Labour Market: Preparing for the Future," OECD Economics Department Working Papers 1012, OECD Publishing.

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