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Public pensions and immigration policy when voters are differently skilled

  • Krieger, Tim

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 Nordakademie - Hochschule der Wirtschaft in its series Arbeitspapiere der Nordakademie with number 2004-01.

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Date of creation: 2004
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Handle: RePEc:zbw:nordwp:200401
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  1. Assaf Razin & Efraim Sadka, 1999. "Unskilled Migration: A Burden or a Boon for the Welfare State," NBER Working Papers 7013, National Bureau of Economic Research, Inc.
  2. 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.
  3. 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.
  4. Tim Krieger & Christoph Sauer, 2003. "Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?," Departmental Discussion Papers 118, University of Goettingen, Department of Economics.
  5. Tim Krieger, 2004. "Public pensions and immigration policy when voters are differently skilled," Public Economics 0411006, EconWPA.
  6. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
  7. Zimmermann, Klaus F, 1993. "Native Wage Impacts of Foreign Labour: A Random Effects Panel Analysis," CEPR Discussion Papers 851, C.E.P.R. Discussion Papers.
  8. Tim Krieger, 2004. "Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note," Journal of Population Economics, Springer, vol. 17(1), pages 177-182, February.
  9. Haupt, Alexander & Peters, Wolfgang, 1998. " Public Pensions and Voting on Immigration," Public Choice, Springer, vol. 95(3-4), pages 403-13, June.
  10. 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.
  11. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
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