The Effects of Immigration Inflows on the Sustainability of the Italian Welfare States

Flavia Coda Moscarola

No 6, CeRP Working Papers from Center for Research on Pensions and Welfare Policies, Turin (Italy)

Abstract: This paper implements a set of generational accounts to estimate the impact of immigration on the sustainability of the Italian welfare state. Italians’ net tax-age profiles are reconstructed on the basis of surveys; most of the immigrants’ net tax-age profiles are reconstructed indirectly. According to our estimates immigration can only partly relieve the burden that current fiscal policy will put on future generations. In the baseline case immigrants’ total net taxes reduce the intergenerational imbalance by only 6 percentage points. Interestingly, immigration appears to be more effective in this regard if the immigrants stay in Italy until they die. However, immigration alone cannot restore long-term solvency. Fundamental reform is needed.

Keywords: Social security; immigration; generational accounts (search for similar items in EconPapers)
Date: 2001-04
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Published in Politica Economica, n. 1, 2003

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Persistent link: http://EconPapers.repec.org/RePEc:crp:wpaper:06

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