Advanced Search
MyIDEAS: Login to save this paper or follow this series

The effect of net immigration on economic growth in an ageing economy: transitory and permanent shocks

Contents:

Author Info

  • Muysken, Joan

    ()
    (School of Business and Economics, Maastricht University)

  • Ziesemer, Thomas

    ()
    (UNU-MERIT, and School of Business and 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, using a vector-error-correction model. The conclusions from the analysis of transitory and permanent shocks are that immigration will help to alleviate the ageing problem in the long run, 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-055.pdf
Download Restriction: no

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 055.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:unm:unumer:2011055

Contact details of provider:
Postal: P.O. Box 616, 6200 MD Maastricht
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/
More information through EDIRC

Related research

Keywords: ageing; immigration; unemployment; skills;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(4), pages 759-84, August.
  2. Herbert Brücker & Elke J. Jahn, 2011. "Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 113, pages 286-317, 06.
  3. Mondria, Jordi & Wu, Thomas, 2010. "The puzzling evolution of the home bias, information processing and financial openness," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 34(5), pages 875-896, May.
  4. Felbermayr, Gabriel J. & Hiller, Sanne & Sala, Davide, 2008. "Does Immigration Boost Per Capita Income?," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 08-23, University of Aarhus, Aarhus School of Business, Department of Economics.
  5. James Feyrer, 2007. "Demographics and Productivity," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 100-109, February.
  6. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 105(1), pages 31-48, 03.
  7. Muysken, Joan & Ziesemer, Thomas, 2011. "Immigration and growth in an ageing economy," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  8. Martin Werding, 2008. "Ageing and Productivity Growth: Are there Macro-level Cohort Effects of Human Capital?," CESifo Working Paper Series 2207, CESifo Group Munich.
  9. Thomas Lindh & Bo Malmberg, 2009. "European Union economic growth and the age structure of the population," Economic Change and Restructuring, Springer, Springer, vol. 42(3), pages 159-187, August.
  10. Sébastien Jean & Miguel Jimenez, 2007. "The Unemployment Impact of Immigration in OECD Countries," OECD Economics Department Working Papers 563, OECD Publishing.
  11. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 102(3), pages 463-79, June.
  12. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  13. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 23-44, Spring.
  14. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, Elsevier, vol. 74(1), pages 141-150, October.
  15. Krieger, Tim, 2003. "Fertility Rates and Skill Distribution in Razin and Sadka's Migration-Pension Model: A Note," Discussion Papers in Economics, University of Munich, Department of Economics 82, University of Munich, Department of Economics.
  16. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, Elsevier, vol. 55(8), pages 1027-1045.
  17. Vincent VANDENBERGHE & Fabio WALTENBERG, 2010. "Ageing Workforce, Productivity and Labour costs of Belgian Firms," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2010003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  18. Chris Papageorgiou & Marianne Saam, 2008. "Two-level CES Production Technology in the Solow and Diamond Growth Models," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 110(1), pages 119-143, 03.
  19. Peter Huber & Michael Landesmann & Catherine Robinson & Robert Stehrer, 2010. "Migrants’ Skills and Productivity: A European Perspective," National Institute Economic Review, National Institute of Economic and Social Research, National Institute of Economic and Social Research, vol. 213(1), pages R20-R34, July.
  20. Michael Ben-Gad, 2008. "Capital-Skill Complementarity and the Immigration Surplus," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(2), pages 335-365, April.
  21. Morley, Bruce, 2006. "Causality between economic growth and immigration: An ARDL bounds testing approach," Economics Letters, Elsevier, Elsevier, vol. 90(1), pages 72-76, January.
  22. Ekrame Boubtane & Jean-Christophe Dumont, 2013. "Immigration and economic growth in the OECD countries 1986-2006: A panel data analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00800617, HAL.
  23. Muysken, Joan & Cörvers, Frank & Ziesemer, Thomas, 2008. "Immigration can alleviate the ageing problem," Research Memorandum, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  24. Rivera-Batiz, Luis A. & Xie, Danyang, 1993. "Integration among unequals," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 23(3), pages 337-354, July.
  25. Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, Elsevier, vol. 87(3-4), pages 773-797, March.
  26. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, Elsevier, vol. 23(2), pages 512-532, June.
  27. Rafael Gómez & Pablo Hernández de Cos, 2008. "Does Population Ageing Promote Faster Economic Growth?," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 350-372, 09.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Muysken, Joan & Vallizadeh, Ehsan & Ziesemer, Thomas, 2012. "Migration, Unemployment, and Over-qualification: A Specific Factors-Model Approach," EconStor Preprints, ZBW - German National Library of Economics 67479, ZBW - German National Library of Economics.
  2. Muysken, Joan & Ziesemer, Thomas, 2011. "Immigration and growth in an ageing economy," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Vallizadeh, Ehsan & Joan, Muysken & Thomas, Ziesemer, 2012. "The impact of medium-skilled immigration: a general equilibrium approach," MPRA Paper 40006, University Library of Munich, Germany.
  4. Vallizadeh, Ehsan & Muysken, Joan & Ziesemer, Thomas, 2013. "Migration, unemployment and skill downgrading : a specific-factors approach," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201313, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Mathijs Gerritsen & Jens Høj, 2013. "The Dutch Labour Market: Preparing for the Future," OECD Economics Department Working Papers 1012, OECD Publishing.
  6. Ding, Hong, 2012. "Economic growth and welfare state: a debate of econometrics," MPRA Paper 39685, University Library of Munich, Germany.
  7. Ding, Hong, 2012. "Unemployment and Welfare State: What do the Data Tell Us?," MPRA Paper 41921, University Library of Munich, Germany.
  8. 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, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 323-345, May.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2011055. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.