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Discussion Paper Details

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Title: Migration-Regime Liberalization and Social Security: Political-Economy Effect

Author(s): Assaf Razin and Edith Sand

Publication Date: June 2009

Keyword(s): Demographic Imbalance, Pay-As-You-Go Social Security System and Repeated Voting

Programme Area(s): International Macroeconomics

Abstract: The pay-as-you-go social security system, burdened by dwindling labour force, can benefit from immigrants, with birth rates that exceed the native-born birth rates. Thus, the social security system effectively provides an incentive to liberalize migration policy through a political-economy mechanism. The paper examines a dynamic political-economy mechanism through which the social security system influences the young decisive voter's attitudes in favour of a more liberal immigration regime. A Markov equilibrium with social security consists of a more liberal migration policy, than a corresponding equilibrium with no social security.

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Bibliographic Reference

Razin, A and Sand, E. 2009. ' Migration-Regime Liberalization and Social Security: Political-Economy Effect'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7310