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Who is this, who enters there? - Migration in Italy and its effect on fiscal sustainability and pensions

Benedetta Frassi, Christian Hagist and Fabio Pammolli ()

No 17-01, WHU Working Paper Series - Economics Group from WHU - Otto Beisheim School of Management

Abstract: Our paper estimates the impact of immigration on the sustainability of the Italian public finances using the methodology of Generational Accounting. We take into account socio-economic differences between the main migrants’ communities resident in Italy and we present three possible scenarios to reflect the potential economic degree of integration of foreigners in the Italian territory. Moreover, for each scenario we propose several options for migrants concerning both the length of permanence in Italy and the possible collection of retirement benefits. Our results show that the burden of current fiscal policy reduces as integration of the foreign-born increases. If migrants’ children are economically perfectly integrated, the fiscal gap is reduced from 71.9 to -15.3 percent of GDP.

Keywords: accounting; economic integration; generations; migration; public pensions; social security (search for similar items in EconPapers)
JEL-codes: E62 H60 J10 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2017-01-02
New Economics Papers: this item is included in nep-age, nep-eur, nep-int, nep-mac and nep-mig
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