Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-24T19:30:32.721Z Has data issue: false hasContentIssue false
  • English
  • Français

PAYG challenge for preferential migration

Published online by Cambridge University Press:  07 July 2020

Gurgen Aslanyan Open the ORCID record for Gurgen Aslanyan [Opens in a new window]  and
Oleg Mariev
Gurgen Aslanyan*
Affiliation:
Ural Federal University, Ekaterinburg, Russia Manoogian Simone College of Business and Economics, American University of Armenia, Yerevan, Armenia CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Academy of Sciences of the Czech Republic, Prague, Czech Republic
Oleg Mariev
Affiliation:
Ural Federal University, Ekaterinburg, Russia Institute of Economics of the Ural Branch of the RAS, Ekaterinburg, Russia
*
*Corresponding author. Email: Gurgen.Aslanyan@cerge-ei.cz
Get access Rights & Permissions [Opens in a new window]

Abstract

The current study assesses the role of the pay-as-you-go system as an intergenerational redistributive mechanism while immigration control is considered. A theoretical model of a small open economy populated with overlapping generations of heterogeneous agents is used to show that skill-favouring immigration policies are, under rather permissive conditions, welfare depriving for the overall population. However, the policy-setting generation is shown to benefit from immigration control, thus decreasing the welfare for the future population.

Keywords

Immigrationintergenerational redistributionPAYGsocial securityF22H55J10
Type
Article
Information
Journal of Pension Economics & Finance , Volume 20 , Issue 2 , April 2021 , pp. 301 - 316
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aaron, H (1966) The social insurance paradox. The Canadian Journal of Economics and Political Science 32, 371–374.CrossRefGoogle Scholar
Abramitzky, R, Boustan, L and Eriksson, K (2020) Do immigrants assimilate more slowly today than in the past? The American Economic Review: Insights 2, 125–141.Google ScholarPubMed
Akin, SN (2012) Immigration, fiscal policy, and welfare in an aging population. The B.E. Journal of Macroeconomics 12, 23.CrossRefGoogle Scholar
Aslanyan, A (2014) The migration challenge for PAYG. Journal of Population Economics 27, 1023–1038.CrossRefGoogle Scholar
Attanasio, O, Kitao, S and Violante, GL (2007) Global demographic trends and social security reform. Journal of Monetary Economics 54, 144–198.CrossRefGoogle Scholar
Auerbach, AJ and Lee, R (2011) Welfare and generational equity in sustainable unfunded pension systems. Journal of Public Economics 95, 16–27.CrossRefGoogle ScholarPubMed
Bauer, TK, Flake, R and Sinning, MG (2013) Labor market effects of immigration: evidence from neighborhood data. Review of International Economics 21, 370–385.CrossRefGoogle Scholar
Bohn, H and Lopez-Velasco, AR (2018) Intergenerational mobility and the political economy of immigration. Journal of Economic Dynamics and Control 94, 72–88.CrossRefGoogle Scholar
Bohn, H and Lopez-Velasco, AR (2019) Immigration and demographics: can high immigrant fertility explain voter support for immigration? Macroeconomic Dynamics 23, 1815–1837.CrossRefGoogle Scholar
Borjas, GJ (1999) The economic analysis of immigration. In Ashenfelter, O and Card, D (eds), Handbook of Labor Economics, vol. 3A. Amsterdam: Elsevier, pp. 1698–1760.Google Scholar
Breyer, F (1989) On the intergenerational Pareto efficiency of pay-as-you-go financed pension systems. Journal of Institutional and Theoretical Economics 145, 643–658.Google Scholar
Card, D (2005) Is the new immigration really so bad? The Economic Journal 115, F300–F323.CrossRefGoogle Scholar
Card, D and Rothstein, J (2007) Racial segregation and the black-white test score gap. Journal of Public Economics 91, 2158–2184.CrossRefGoogle Scholar
Chojnicki, X, Docquier, F and Ragot, L (2011) Should the US have locked heaven's door? Reassessing the benefits of postwar immigration. Journal of Population Economics 24, 317–359.CrossRefGoogle Scholar
Cipriani, GP and Pascucci, F (2020) Pension policies in a model with endogenous fertility. Journal of Pension Economics and Finance 19, 109–125.CrossRefGoogle Scholar
Cortes, P (2008) The effect of low-skilled immigration on US prices: evidence from CPI data. Journal of Political Economy 116, 381–422.CrossRefGoogle Scholar
Furtado, D and Hock, H (2010) Low skilled immigration and work-fertility tradeoffs among high skilled US natives. American Economic Review: Papers and Proceedings 100, 224–228.CrossRefGoogle ScholarPubMed
Heath, AF, Rothon, C and Kilpi, E (2008) The second generation in Western Europe: education, unemployment, and occupational attainment. Annual Review of Sociology 34, 211–235.CrossRefGoogle Scholar
Kerr, SP and Kerr, WR (2011) Economic impacts of immigration: a survey. Finnish Economic Papers 24, 1–32.Google Scholar
Krieger, T (2004) Fertility rates and skill distribution in Razin and Sadka's migration-pension model: a note. Journal of Population Economics 17, 177–182.CrossRefGoogle Scholar
Krieger, T (2014) Public pensions and immigration. CESifo DICE Report 12, 10–15.Google Scholar
Kudrna, G, Tran, C and Woodland, A (2019) Facing demographic challenges: pension cuts or tax hikes? Macroeconomic Dynamics 23, 625–673.CrossRefGoogle Scholar
Laboure, M (2019) Pensions: the impact of migrations and cross- border workers in a small open economy. Journal of Pension Economics and Finance 18, 247–270.CrossRefGoogle Scholar
Lacomba, JA and Lagos, F (2010) Immigration and pension benefits in the host country. Economica 77, 283–295.CrossRefGoogle Scholar
Lee, R and Miller, T (2000) Immigration, social security, and broader fiscal impacts. The American Economic Review 90, 350–354.CrossRefGoogle Scholar
Lopez-Velasco, AR (2019) Tax smoothing with immigration in an overlapping generations economy. Applied Economics Letters 26, 460–464.CrossRefGoogle Scholar
Nathan, M (2014) The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries. IZA Journal of Migration 3, 4.CrossRefGoogle Scholar
Nishiyama, S and Smetters, K (2007) Does social security privatization produce efficiency gains. The Quarterly Journal of Economics 122, 1677–1719.CrossRefGoogle Scholar
Okkerse, L (2008) How to measure labour market effects of immigration: a review. Journal of Economic Surveys 22, 1–30.CrossRefGoogle Scholar
Razin, A and Sadka, E (1999) Migration and pension with international capital mobility. Journal of Public Economics 74, 141–150.CrossRefGoogle Scholar
Razin, A and Sadka, E (2000) Unskilled migration: a burden or a boon for the welfare state. Scandinavian Journal of Economics 102, 463–479.CrossRefGoogle Scholar
Rho, D and Sanders, S (2020) Immigrant earnings assimilation in the United States: a panel analysis. Journal of Labor Economics. doi: 10.1086/708615Google Scholar
Sekiguchi, Y and Jinno, M (2015) Beveridge vs Bismarck pension systems: considering fertility rates and skill distribution. The Singapore Economic Review 63, 1141–1153. doi: 10.1142/S0217590815500769.CrossRefGoogle Scholar
Storesletten, K (2000) Sustaining fiscal policy through immigration. Journal of Political Economy 108, 300–323.CrossRefGoogle Scholar
Storesletten, K (2003) Fiscal implications of immigration: a net present value calculation. Scandinavian Journal of Economics 105, 487–506.CrossRefGoogle Scholar