Social Security and Migration in an Ageing Europe
The European ageing process will lead to a dramatic rise in dependency ratios over the next decades. At the same time labour mobility will increase as a result of greater European economic integration. We analyse the implications of migration and ageing for European social security systems. With uncoordinated social security policies, national pensions funds compete for contributors whose mobility is the source of indeterminacy. The viability of coordination among national social security systems depends critically on which policy parameter it is based on. The benefits from coordination are limited and coordination is unlikely to yield efficient outcomes.
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