Immigration, Integration and Fiscal Sustainability

Poul Schou

No 200502, DREAM Working Paper Series from Danish Rational Economic Agents Model, DREAM

Abstract: Economic theory points out that immigration of even low-skilled immigrants may improve public finances in Western welfare states, and it is some times suggested that fiscal sustainability problems in Western countries caused by ageing populations could be solved by increasing immigration. We examine consequences of various immigration scenarios using the large-scale computable general equilibrium model DREAM describing the Danish economy. It turns out that increased immigration will generally worsen the Danish fiscal sustainability. Improved economic integration of immigrants and their descendants, however, may alleviate the problems of the public sector considerably.

Keywords: immigration; sustainable fiscal policy; CGE models (search for similar items in EconPapers)
JEL-codes: D58 E62 F22 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.dreammodel.dk/pdf/A2005_01.pdf First version, 2005 (application/pdf)

Related works:
Journal Article: Immigration, integration and fiscal sustainability (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:dra:wpaper:200502

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