The Impact Of Migration On The Long-Run Financial Stability Of The Social Insurance System

Hristina Blagoycheva ()
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Hristina Blagoycheva: Varna University of Economics

Business & Management Compass, 2010, issue 1, 70-77

Abstract: The worsened demographic structure causes serious financial difficulties to the social insurance systems of almost all developed countries. Despite the conflicting views of economists, one of the solutio ns to the problem is the immigration of labour force, which increases the number of the employed and helps provide additional financing to the system. For a comparatively long period of time, migrants are net beneficiaries of the insurance system. However, from the viewpoint of the infinite horizon of development of the economy, that net fiscal burden may be deferred way ahead in time. In that case there gets the upper hand the argument that with regard to the participation of immigration in the financing o f the pension system (which constitutes the biggest problem), from it there are able to benefit all present - day and future generations of pensioners in the respective country.

JEL-codes: H55 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2010:i:1:p:70-77

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