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Immigration can alleviate the ageing problem

Author

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  • Muysken Joan
  • Cörvers Frank
  • Ziesemer Thomas

    (METEOR)

Abstract

This paper analyses the way immigration can help to alleviate the burden ageing presents for the welfare states of most Western Economies. We develop a macroeconomic framework which deals with the impact of both ageing and immigration on economic growth. This is combined with a detailed model of the labour market, to include the interaction with unemployment, while distinguishing between low- and high-skilled labour. The empirical relevance of some crucial model assumptions are shown to hold for the Netherlands, 1973 – 2005. The conclusions are that immigration will help to alleviate the ageing problem, as long as the immigrants will be able to find work. Moreover, the better educated the immigrants are or become, the higher their contribution to growth will be.

Suggested Citation

  • Muysken Joan & Cörvers Frank & Ziesemer Thomas, 2008. "Immigration can alleviate the ageing problem," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  • Handle: RePEc:unm:umamet:2008004
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    File URL: https://cris.maastrichtuniversity.nl/portal/files/553760/content
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    References listed on IDEAS

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    1. Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-479, June.
    2. Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 773-797, March.
    3. Kemnitz, Alexander, 2001. "Endogenous growth and the gains from immigration," Economics Letters, Elsevier, vol. 72(2), pages 215-218, August.
    4. 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.
    5. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
    6. Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 477-494.
    7. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, March.
    8. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
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    Cited by:

    1. Joan Muysken & Thomas Ziesemer, 2014. "The Effect of Immigration on Economic Growth in an Ageing Economy," Bulletin of Applied Economics, Risk Market Journals, vol. 1(1), pages 35-63.
    2. J. Muysken & T. H. W. Ziesemer, 2013. "A permanent effect of temporary immigration on economic growth," Applied Economics, Taylor & Francis Journals, vol. 45(28), pages 4050-4059, October.
    3. 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.
    4. Muysken, Joan & Ziesemer, Thomas, 2011. "Immigration and growth in an ageing economy - version 2," MERIT Working Papers 037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Gurgen Aslanyan, 2012. "Migration Challenge for PAYG," FIW Working Paper series 101, FIW.
    6. Dan Valeriu Voinea, 2014. "A demographic portrait of Romanian immigrants In California," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 1(1), pages 63-70, December.

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    macroeconomics ;

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