The Role of Immigration in Dealing with the Developed World's Demographic Transition
This paper develops a three-region dynamic general-equilibrium life-cycle model to analyze general and skill-specific immigration policy in the U.S., Japan, and the E.U. Immigration is often offered as a solution to the remarkable demographic transition underway in the developed world. However, the precise net impact of expanded immigration is quite unclear. Additional immigrants pay taxes, but they also require public goods and become eligible for social security programs. Since taxes and transfer payments are collected and distributed on a progressive basis, high-skilled immigrants deliver a larger bang for the buck when it comes to paying net taxes. Our model confirms this point. Nonetheless, its findings are not pretty. It shows that a significant expansion of immigration, whether across all skill groups or among particular skill groups, will do remarkably little to alter the major capital shortage, tax hikes, and reductions in real wages that can be expected along the demographic transition.
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 60 (2004)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.mohr.de/fa|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
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.:
- Fehr, Hans, 1999.
"Pension reform during the demographic transition,"
W.E.P. - Würzburg Economic Papers
8, University of Würzburg, Chair for Monetary Policy and International Economics.
- Robin Brooks, 2003. "Population Aging and Global Capital Flows in a Parallel Universe," IMF Staff Papers, Palgrave Macmillan, vol. 50(2), pages 3.
- Kjetil Storesletten, .
"Sustaining Fiscal Policy Through Immigration,"
_005, Stockholm University, Institute for International Economic Studies.
- Hans Fehr & Sabine Jokisch & Larry Kotlikoff, 2003.
"The Developed World's Demographic Transition - the Roles of Capital Flows, Immigration, and Policy,"
Boston University - Department of Economics - The Institute for Economic Development Working Papers Series
dp-133, Boston University - Department of Economics.
- Hans Fehr & Sabine Jokisch & Laurence Kotlikoff, 2003. "The Developed World's Demographic Transition - The Roles of Capital Flows, Immigration, and Policy," NBER Working Papers 10096, National Bureau of Economic Research, Inc.
- Axel Börsch-Supan & Alexander Ludwig & Joachim Winter, 2002.
"Aging and International Capital Flows,"
MEA discussion paper series
02010, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Börsch-Supan, Axel & Ludwig, Alexander & Winter, Joachim, 2002. "Aging and International Capital Flows," Sonderforschungsbereich 504 Publications 02-27, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Axel Boersch-Supan & Alexander Ludwig & Joachim Winter, 2001. "Aging and International Capital Flows," NBER Working Papers 8553, National Bureau of Economic Research, Inc.
- Börsch-Supan, Axel & Ludwig, Alexander & Winter, Joachim, 2001. "Aging and International Capital Flows," Discussion Papers 605, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
- Jagadeesh Gokhale & Laurence J. Kotlikoff & James Sefton & Martin Weale, 1998.
"Simulating the transmission of wealth inequality via bequests,"
9811, Federal Reserve Bank of Cleveland.
- Gokhale, Jagadeesh & Kotlikoff, Laurence J. & Sefton, James & Weale, Martin, 2001. "Simulating the transmission of wealth inequality via bequests," Journal of Public Economics, Elsevier, vol. 79(1), pages 93-128, January.
- Jagadeesh Gokhale & Laurence J. Kotlikoff & James Sefton & Martin Weale, 1999. "Simulating the Transmission of Wealth Inequity via Bequests," NBER Working Papers 7183, National Bureau of Economic Research, Inc.
- Thai-Thanh Dang & Pablo Antolín & Howard Oxley, 2001. "Fiscal Implications of Ageing: Projections of Age-Related Spending," OECD Economics Department Working Papers 305, OECD Publishing.
- Whitehouse, Edward, 2001. "Pension systems in 15 countries compared: the value of entitlements," MPRA Paper 14751, University Library of Munich, Germany.
- David Altig, 2001. "Simulating Fundamental Tax Reform in the United States," American Economic Review, American Economic Association, vol. 91(3), pages 574-595, June.
- Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
- Lundborg, Per & Segerstrom, Paul S., 1998.
"The Growth and Welfare Effects of International Mass Migration,"
Working Paper Series
146, Trade Union Institute for Economic Research.
- Lundborg, Per & Segerstrom, Paul S., 2002. "The growth and welfare effects of international mass migration," Journal of International Economics, Elsevier, vol. 56(1), pages 177-204, January.
- Mariacristina De Nardi & Selahattin Imrohoroglu & Thomas J. Sargent, 1999.
"Projected U.S. Demographics and Social Security,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 575-615, July.
- Philip Oreopoulos & Alan J. Auerbach, 1999. "Analyzing the Fiscal Impact of U.S. Immigration," American Economic Review, American Economic Association, vol. 89(2), pages 176-180, May.
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200409)60:3_296:troiid_2.0.tx_2-_. 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: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.