Immigration, integration and fiscal sustainability
Economic theory points out that immigration of even low-skilled immigrants may improve public finances in Western welfare states, and it is some times suggested that fiscal sustainability problems in Western countries caused by ageing populations could be solved by increasing immigration. We examine consequences of various immigration scenarios using the large-scale computable general equilibrium model DREAM describing the Danish economy. It turns out that increased immigration will generally worsen the Danish fiscal sustainability. Improved economic integration of immigrants and their descendants, however, may alleviate the problems of the public sector considerably.
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Volume (Year): 19 (2006)
Issue (Month): 4 (October)
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References listed on IDEAS
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- Holger Bonin & Bernd Raffelhüschen & Jan Walliser, "undated".
"Can Immigration Alleviate the Demographic Burden?,"
EPRU Working Paper Series
99-17, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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"The Economic Benefits from Immigration,"
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American Economic Association, vol. 9(2), pages 3-22, Spring.
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- David Coleman & Robert Rowthorn, 2004. "The Economic Effects of Immigration into the United Kingdom," Population and Development Review, The Population Council, Inc., vol. 30(4), pages 579-624.
- Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, 03.
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