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Time preference, international migration, and social security

  • Volker Meier

    ()

    (Department of Economics, University of Halle, Grosse Steinstrasse 73, D-06099 Halle, Saale, Germany)

This paper analyzes both the formation of long-run migration incentives and the consequences of a regime change from "autarky" to "free migration" in an overlapping-generations framework with two countries. Under autarky the countries may differ with respect to their aggregate savings rate or with respect to their pension-wage ratio. It is shown that an individual prefers to live in a country where the capital-labor ratio is close to the Golden Rule level and where his characteristics are relatively scarce. Both the migration incentives and the consequences of free migration are determined by these two effects.

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Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 13 (2000)
Issue (Month): 1 ()
Pages: 127-146

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Handle: RePEc:spr:jopoec:v:13:y:2000:i:1:p:127-146
Note: Received: 2 March 1998/Accepted: 10 February 1999
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  1. CRETTEZÂ , Bertrand & MICHELÂ , Philippe & VIDALÂ , Jean-Pierre, 1995. "Time Preference and Labour Migration in an OLG Model with Land and Capital," CORE Discussion Papers 1995046, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Stefan Homburg & Wolfram Richter, 1993. "Harmonizing public debt and public pension schemes in the European community," Journal of Economics, Springer, vol. 58(1), pages 51-63, December.
  3. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
  4. Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer, vol. 2(4), pages 281-99.
  5. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  6. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer, vol. 4(1), pages 1-12, March.
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