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Public pensions and immigration policy when voters are differently skilled

  • Tim Krieger

    (NORDAKADEMIE - Hochschule der Wirtschaft)

Although immigration of workers generates a positive externality on members of domestic pension systems, many countries are very reluctant to allow foreigners into their labor markets. In a political economic framework, we explain this voting outcome by considering a young unskilled median voter who faces – in addition to a reduction of contribution rates – negative effects from immigration as well.

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Paper provided by EconWPA in its series Public Economics with number 0411006.

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Length: 9 pages
Date of creation: 15 Nov 2004
Date of revision:
Handle: RePEc:wpa:wuwppe:0411006
Note: Type of Document - pdf; pages: 9
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  1. Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June.
  2. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  3. Razin, A. & Sadka, E., 1999. "Unskilled Migration: a Burden or a Boon for the Welfare State?," Papers 8-99, Tel Aviv.
  4. Krieger, Tim, 2003. "Fertility Rates and Skill Distribution in Razin and Sadka's Migration-Pension Model: A Note," Discussion Papers in Economics 82, University of Munich, Department of Economics.
  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. Hans-Werner Sinn, 1997. "The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal for a Partial Transition to a Funded System," NBER Working Papers 6229, National Bureau of Economic Research, Inc.
  7. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer, vol. 7(2), pages 177-92.
  8. Tim Krieger, 2014. "Public Pensions and Immigration," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 10-15, 07.
  9. Martin Werding, 2003. "After Another Decade of Reform: Do Pension Systems in Europe Converge?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 1(1), pages 11-16, October.
  10. Tim Krieger & Christoph Sauer, 2004. "Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(1), pages 1-30.
  11. 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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