Migration Challenge for PAYG
AbstractImmigration has been popularised in the economics literature as a tool to balance the troubled PAYG pension systems. A pivotal research by Razin and Sadka showed that unskilled immigration can surmount the pension problem and, further, boost the general welfare in the host economy. However a large strand of current economics literature is engaged in identifying mechanisms through which unskilled immigration, while solving the pension problem, causes undesired shifts in general welfare. This work shows that actually recurring unskilled immigration may challenge the entire pension system and decrease the pension benefits themselves.
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Bibliographic InfoPaper provided by FIW in its series FIW Working Paper series with number 101.
Date of creation: Sep 2012
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Find related papers by JEL classification:
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- 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
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-09-30 (Economics of Ageing)
- NEP-ALL-2012-09-30 (All new papers)
- NEP-DEM-2012-09-30 (Demographic Economics)
- NEP-MIG-2012-09-30 (Economics of Human Migration)
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