DP14574 Ageing-Driven Migration and Redistribution: Comparing Policy Regimes

Author(s): Assaf Razin, Alexander Schwemmer
Publication Date: April 2020
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Programme Areas: International Macroeconomics and Finance
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14574

Life cycle and insurance-type considerations dominate redistribution policy. Wage and fiscal burden implication dominate migration policy Ageing drive both migration and redistribution trends Fiscal prospects of ageing depend on two factors, in order to mitigate adverse macroeconomic impact of ageing. The first is the tendency towards for capital deepening; the second increased migration flows. In a macroeconomic framework the paper compares different policy regimes, directed at migration and redistribution issues: migration quotas, provision of social benefits, labor income and capital income taxation, - are all endogenously determined in a policy-optimizing framework. The analysis makes a three-way comparison: free-migration regime differentiated from restricted-migration regime, welfare-state regime distinguished from free-market regime, and low-income-majority regime assessed against high-income-majority regime.