Can immigrant employment alleviate the demographic burden? The role of union centralization

Alexander Kemnitz

Economics Letters, 2008, vol. 99, issue 1, 123-126

Abstract: We examine how labor immigration affects public pensions under centralized wage setting. We show that immigration improves the sustainability of pay-as-you-go pensions if and only if total employment declines. This occurs if the labor demand elasticity exceeds the unemployment rate.

Date: 2008
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Related works:
Working Paper: Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization (2005)
Working Paper: Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization (2005)
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