IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_523.html
   My bibliography  Save this paper

Voting on Public Pensions With Hand and Feet: How Young Migrants Try to Escape From Gerontocracy

Author

Listed:
  • Alexander Haupt
  • Wolfgang Peters

Abstract

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.

Suggested Citation

  • Alexander Haupt & Wolfgang Peters, 2001. "Voting on Public Pensions With Hand and Feet: How Young Migrants Try to Escape From Gerontocracy," CESifo Working Paper Series 523, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_523
    as

    Download full text from publisher

    File URL: https://www.cesifo-group.de/DocDL/cesifo_wp523.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Sinn, Hans-Werner, 1990. "Tax harmonization and tax competition in Europe," European Economic Review, Elsevier, vol. 34(2-3), pages 489-504, May.
    2. 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 104-115, February.
    3. 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.
    4. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324, Elsevier.
    5. 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.
    6. 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.
    7. Goodspeed, Timothy J., 1998. "On the importance of public choice in migration models," Economics Letters, Elsevier, vol. 59(3), pages 373-379, June.
    8. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-774, September.
    9. Lex Meijdam & Harrie Verbon, 1996. "Aging and political decision making on public pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(2), pages 141-158, June.
    10. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    11. von Hagen, Jürgen & Walz, Uwe, 1994. "Social Security and Migration in an Ageing Europe," CEPR Discussion Papers 1022, C.E.P.R. Discussion Papers.
    12. Friedrich Breyer & Klaus Stolte, 2001. "Demographic change, endogenous labor supply and the political feasibility of pension reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 409-424.
    13. Hans-Werner Sinn, 2000. "EU Enlargement and the Future of the Welfare State," CESifo Working Paper Series 307, CESifo Group Munich.
    14. 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 877-892, September.
    15. Scholten, Ulrich & Thum, Marcel, 1996. "Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-361, June.
    16. 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.
    17. Haupt, Alexander & Peters, Wolfgang, 1998. "Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-413, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuji Tamura, 2006. "Disagreement over the immigration of low-income earners in a welfare state," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 691-702, October.
    2. Tim Krieger, 2002. "Intergenerational Redistribution and Labor Mobility: A Survey," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 339-361, July.
    3. Tamura, Yuji, 2004. "Referendum-Led Immigration Policy In The Welfare State," The Warwick Economics Research Paper Series (TWERPS) 713, University of Warwick, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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: (Klaus Wohlrabe). General contact details of provider: http://edirc.repec.org/data/cesifde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.