Voting on Public Pensions With Hand and Feet: How Young Migrants Try to Escape From Gerontocracy
Aging changes the political power in a democracy in favor of the elder generations. Consequently, the retirees can extend the pay-as-you-go financed pensions. Under free labor mobility like within the EU, the success of gerontocracy, nevertheless, is restricted by migration of the young generations. This connection between political voting on intergenerational redistribution and voting with the feet is analyzed in a two-country model with overlapping generations. We distinguish between the case in which the young generations‘ migration decision takes its effect on future pensions into account (strategic migration) and the case in which it only reflects differentials in labor income (myopic migration). The paper also pays attention to the implications of common harmonization principles and to the consequences of price discrimination between natives and immigrants.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- Rachel M. Friedberg & J. Hunt, 1995.
"The Impact of Immigrants on Host Country Wages, Employment and Growth,"
95-5, Brown University, Department of Economics.
- Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
- De Palma, Andre & Papageorgiou, Yorgos Y., 1988. "Heterogeneity in states and urban structure," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 37-56, February.
- Breyer, Friedrich & Craig, Ben, 1997.
"Voting on social security: Evidence from OECD countries,"
European Journal of Political Economy,
Elsevier, vol. 13(4), pages 705-724, December.
- Friedrich Breyer & Ben Craig, 1995. "Voting on social security: evidence from OECD countries," Working Paper 9511, Federal Reserve Bank of Cleveland.
- Meijdam, A.C. & Verbon, H.A.A., 1996.
"Aging and political decision making on public pensions,"
Other publications TiSEM
30434a77-0d7a-4d11-8fbd-3, Tilburg University, School of Economics and Management.
- Lex Meijdam & Harrie Verbon, 1996. "Aging and political decision making on public pensions," Journal of Population Economics, Springer, vol. 9(2), pages 141-158, June.
- Meijdam, Lex & Verbon, Harrie A A, 1996. "Aging and Political Decision Making on Public Pensions," Journal of Population Economics, Springer, vol. 9(2), pages 141-58, May.
- Friedrich Breyer & Klaus Stolte, 2000.
"Demographic Change, Endogenous Labor Supply and the Political Feasibility of Pension Reform,"
Discussion Papers of DIW Berlin
202, DIW Berlin, German Institute for Economic Research.
- Friedrich Breyer & Klaus Stolte, 2001. "Demographic change, endogenous labor supply and the political feasibility of pension reform," Journal of Population Economics, Springer, vol. 14(3), pages 409-424.
- von Hagen, Jürgen & Walz, Uwe, 1994. "Social Security and Migration in an Ageing Europe," CEPR Discussion Papers 1022, C.E.P.R. Discussion Papers.
- Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
- Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
- Sinn, Hans-Werner, 1990.
"Tax harmonization and tax competition in Europe,"
Munich Reprints in Economics
19846, University of Munich, Department of Economics.
- Ravi Kanbur & Michael Keen, 1991.
"Jeux Sans Frontieres: Tax Competition and Tax Coordination when Countries Differ in Size,"
819, Queen's University, Department of Economics.
- Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-92, September.
- Sinn, Hans-Werner, 2002.
"EU enlargement and the future of the welfare state,"
Munich Reprints in Economics
19736, University of Munich, Department of Economics.
- Sinn, Hans-Werner, 2002. "EU Enlargement and the Future of the Welfare State," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 104-15, February.
- Hans-Werner Sinn, 2000. "EU Enlargement and the Future of the Welfare State," CESifo Working Paper Series 307, CESifo Group Munich.
- Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-26, Sept./Oct.
- Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June.
- Goodspeed, Timothy J., 1998. "On the importance of public choice in migration models," Economics Letters, Elsevier, vol. 59(3), pages 373-379, June.
- repec:ner:tilbur:urn:nbn:nl:ui:12-72302 is not listed on IDEAS
- Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_523. 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: (Julio Saavedra)
If references are entirely missing, you can add them using this form.