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Immigration and Pension Benefits in the Host-country

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Abstract

This paper examines the role that low-skilled immigrant labor force plays in determining the benefits of the public pension of the host population. With an overlapping-generations model in continuous time which allows to identify which groups of native population are better or worse off with immigration and a fully redistributive pension system, we find that the retirement benefits and hence the welfare levels of the host population are affected in a different way whether sharing or not pension benefits with immigrants. In this sense, the youngest local population may prefer, contrary to the oldest ones, a policy of closed borders.

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  • Juan A. Lacomba & Francisco M. Lagos, 2004. "Immigration and Pension Benefits in the Host-country," Economic Working Papers at Centro de Estudios Andaluces E2004/77, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2004_77
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    References listed on IDEAS

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    8. Tim Krieger, 2008. "Public pensions and return migration," Public Choice, Springer, vol. 134(3), pages 163-178, March.
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    13. Krieger, Tim, 2003. "Voting on Low-Skill Immigration under Different Pension Regimes," Public Choice, Springer, vol. 117(1-2), pages 51-78, October.
    14. Tim Krieger, 2004. "Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 177-182, February.
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    17. Sheetal K. Chand & Martin Paldam, 2004. "The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state," Economics Working Papers 2004-4, Department of Economics and Business Economics, Aarhus University.
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    Cited by:

    1. Tim Krieger, 2014. "Public Pensions and Immigration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 10-15, 07.
    2. Assaf Razin, 2013. "MIGRATION into the WELFARE STATE: tax and migration competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 548-563, August.
    3. Tim Krieger, 2008. "Public pensions and return migration," Public Choice, Springer, vol. 134(3), pages 163-178, March.
    4. Catia Batista & Janis Umblijs, 2014. "Migration, risk attitudes, and entrepreneurship: evidence from a representative immigrant survey," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.
    5. Gurgen Aslanyan, 2012. "Immigration Control & Long-Run Population Welfare," CERGE-EI Working Papers wp453, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    7. Gurgen Aslanyan, 2014. "The migration challenge for PAYG," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1023-1038, October.
    8. Takuya Matsuyama & Tomomi Miyazaki, 2017. "The Effects of Immigration on Social Expenditure in Host Countries," Discussion Papers 1708, Graduate School of Economics, Kobe University.
    9. Razin, Assaf & Sadka, Efraim, 2014. "Migration and Welfare State: Why is America Different from Europe?," CEPR Discussion Papers 10127, C.E.P.R. Discussion Papers.
    10. repec:ces:ifodic:v:12:y:2014:i:2:p:19116205 is not listed on IDEAS
    11. Marina De Angelis & Marcella Corsi & Daniele Frigeri, 2017. "The determinants of entrepreneurship for migrants in Italy. Do Italian migrants become entrepreneurs by “opportunity” or through “necessity”?," Working Papers CEB 17-031, ULB -- Universite Libre de Bruxelles.
    12. Igor Fedotenkov & Lex Meijdam, 2014. "Pension reform with migration and mobile capital: is a Pareto improvement possible?," International Economics and Economic Policy, Springer, vol. 11(3), pages 431-450, September.
    13. Krieger, Tim, 2005. "Renten und Zuwanderung: Ein Überblick über neue Ergebnisse der Forschung," Arbeitspapiere der Nordakademie 2005-04, Nordakademie - Hochschule der Wirtschaft.
    14. repec:eee:ecolet:v:162:y:2018:i:c:p:56-61 is not listed on IDEAS

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    Keywords

    Immigration; welfare; pension benefits.;

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