Migration: Burden or benefit for welfare state financing? [Immigration vieillissement démographique et financement de la protection sociale]

Xavier Chojnicki and Lionel Ragot (lragot@parisnanterre.fr)

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Abstract: Immigration is often perceived as an instrument of adaptation for aging countries. In this paper, we evaluate, using a dynamic general equilibrium model, the contribution of migration policy in reducing the tax burden associated with the aging population in France. We show that the age and skill structure of immigrants is the key feature that mainly determines the effects on social protection finances. Overall, these effects are all the more positive in the short-medium term that the migration policy is selective (in favor of more skilled workers). In the long term, beneficial effects of a selective policy may disappear. But the financial gains from more consequent migration flows are relatively moderated in comparison of demographic changes it implies. © Presses de Sciences Po. Tous droits réservés pour tous pays.

Date: 2012
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Published in Revue Economique, 2012, 63 (3), pp.501--512. ⟨10.3917/reco.633.0501⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02877973

DOI: 10.3917/reco.633.0501

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