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Public pensions and immigration policy when voters are differently skilled

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  • Tim Krieger

    (NORDAKADEMIE - Hochschule der Wirtschaft)

Abstract

Although immigration of workers generates a positive externality on members of domestic pension systems, many countries are very reluctant to allow foreigners into their labor markets. In a political economic framework, we explain this voting outcome by considering a young unskilled median voter who faces – in addition to a reduction of contribution rates – negative effects from immigration as well.

Suggested Citation

  • Tim Krieger, 2004. "Public pensions and immigration policy when voters are differently skilled," Public Economics 0411006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0411006
    Note: Type of Document - pdf; pages: 9
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    References listed on IDEAS

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    1. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-479, June.
    2. Tim Krieger & Christoph Sauer, 2004. "Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(1), pages 1-30.
    3. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 177-192.
    4. Tim Krieger, 2004. "Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 177-182, February.
    5. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    6. Martin Werding, 2003. "After Another Decade of Reform: Do Pension Systems in Europe Converge?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(01), pages 11-16, October.
    7. Sinn, Hans-Werner, 1997. "The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal For a Partial Transition to a Funded System," CEPR Discussion Papers 1734, C.E.P.R. Discussion Papers.
    8. Tim Krieger, 2014. "Public Pensions and Immigration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 10-15, July.
    9. Martin Werding, 2003. "After Another Decade of Reform: Do Pension Systems in Europe Converge?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 11-16, October.
    10. Scholten, Ulrich & Thum, Marcel, 1996. "Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-361, June.
    11. Haupt, Alexander & Peters, Wolfgang, 1998. "Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-413, June.
    12. repec:ces:ifodic:v:1:y:2003:i:1:p:14567823 is not listed on IDEAS
    13. Assaf Razin & Efraim Sadka, 2000. "Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-479, September.
    14. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
    15. John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Native Wage Impacts of Foreign Labor," Working Papers 9408, SELAPO Center for Human Resources.
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    Cited by:

    1. Juan A. Lacomba & Francisco Lagos, 2010. "Immigration and Pension Benefits in the Host Country," Economica, London School of Economics and Political Science, vol. 77(306), pages 283-295, April.

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    More about this item

    Keywords

    pensions; immigration; median voter; skill differences;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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