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Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective

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  • Tosun, Mehmet S.

    () (University of Nevada, Reno)

Abstract

This paper uses an overlapping generations model with international labor mobility and a politically responsive fiscal policy to examine aging in developed and developing regions. Migrant workers change the political structure composed of young and elderly voters in both labor-receiving and labor-sending countries. Numerical simulations show that the developed region benefits more from international labor mobility through the contribution of migrant workers as laborers, savers, and voters. The developing region experiences significant growth in all specifications but benefit more under international capital mobility. Restricting political participation of migrant workers in the developed region produces inferior growth results.

Suggested Citation

  • Tosun, Mehmet S., 2009. "Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective," IZA Discussion Papers 4166, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4166
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    Citations

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    Cited by:

    1. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    2. Tosun, Mehmet S., 2011. "Demographic Divide and Labor Migration in the Euro-Mediterranean Region," IZA Discussion Papers 6188, Institute for the Study of Labor (IZA).
    3. Mehmet Tosun, 2006. "Explaining the Variation in Tax Structures in the MENA Region," Working Papers 06-018, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
    4. Mehmet Serkan Tosun & Claudia Williamson & Pavel Yakovlev, 2007. "Population Aging, Elderly Migration and Education Spending: Intergenerational Conflict Revisited," Working Papers 07-003, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
    5. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, Elsevier.
    6. Krieger, Tim, 2005. "Renten und Zuwanderung: Ein Überblick über neue Ergebnisse der Forschung," Arbeitspapiere der Nordakademie 2005-04, Nordakademie - Hochschule der Wirtschaft.
    7. Lamin Y Leigh, 2006. "Hong Kong Special Administrative Region; Macroeconomic Impact of an Aging Population in a Highly Open Economy," IMF Working Papers 06/87, International Monetary Fund.

    More about this item

    Keywords

    population aging; overlapping generations; endogenous fiscal policy; international labor mobility; international capital mobility;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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