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Immigration, Unemployment and Pensions

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  • Alexander Kemnitz

Abstract

This paper examines the impact of immigration on a host country with welfare state arrangements that support both the unemployed and the elderly. It is shown that low-skilled immigration increases the unemployment rate. Furthermore, it harms the low-skilled native population and benefits the high-skilled natives and pensioners. Nevertheless, as under competitive labor markets, immigration generates an unambiguous gain for the native population as a whole. However, in contrast to the findings under full employment, this gain can be dampened by an expansion of the pension system. Copyright The editors of the "Scandinavian Journal of Economics", 2002 .

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  • Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, March.
  • Handle: RePEc:bla:scandj:v:105:y:2003:i:1:p:31-48
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