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Related Experiment Videos

Migration and pension.

A Razin, E Sadka

    Working Paper Series (National Bureau of Economic Research)
    |August 15, 2002
    PubMed
    Summary
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    Young, low-skilled migrants can improve pension system finances. Economic modeling shows that migration benefits all existing age and income groups, making it a Pareto-improving measure for society.

    Area of Science:

    • Economics
    • Demographics
    • Public Finance

    Background:

    • The financial sustainability of pension systems is a growing concern globally.
    • The economic impact of migration, particularly low-skilled migration, on social welfare systems is debated.
    • Existing models often predict adverse effects of low-skilled migrants on native populations.

    Purpose of the Study:

    • To analyze the impact of migration on the financial soundness of pension systems.
    • To evaluate whether migration can be a Pareto-improving measure.
    • To assess the effects of migration on different age and income groups within a society.

    Main Methods:

    • Utilized a Samuelsonian overlapping generations (OLG) model.
    • Incorporated demographic factors and welfare state considerations.
    Keywords:
    Demographic FactorsEconomic ConditionsEconomic FactorsEmployment StatusFinancial ActivitiesFinancing, GovernmentMacroeconomic FactorsMicroeconomic FactorsMigrantsMigrationOld Age SecurityPopulationPopulation DynamicsRetirementSocial SecuritySocioeconomic FactorsSocioeconomic StatusWorld

    Related Experiment Videos

  • Analyzed the economic implications of migrant arrivals on existing populations.

    • Main Results:

    • Contrary to static models, migration was found to be a Pareto-improving measure.
    • Young migrants, even if low-skilled, contribute positively to pension system finances.
    • All existing income (low and high) and age (young and old) groups benefit from migration.

    Conclusions:

    • Migration can enhance the financial stability of pension systems.
    • The integration of migrants can lead to welfare gains for the entire existing population.
    • Economic models demonstrate that migration can be a mutually beneficial policy.