Calculating the net benefi t of admitting immigrants under the de fined-return-ratio pay-as-you-go pension system

Jinno, Masatoshi (2018): Calculating the net benefi t of admitting immigrants under the de fined-return-ratio pay-as-you-go pension system. Published in: Keizai-kei No. 279 (March 2020): pp. 48-49.

Abstract

This paper calculates the net benefit of admitting immigrants under the defined-return-ratio pay-as-you-go pension system, considering the assimilation costs the next generation whose parents are from abroad must pay as additional costs. As a result, no matter how many immigrants come, the host country can get the positive net benefits through the defined-return-ratio pension system. This result is quietly different from those in Jinno (2011, 2013).

• Item Type: MPRA Paper
• Language: English
• Keywords: Immigrants, the defined-return-ratio pension system, the net benefits.
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants ; Non-labor Discrimination; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers

References

Casarico, A. and Devillanova, C., (2003), "Social security and migration with endogenous skill upgrading," Journal of Public Economics, 87, pp. 773-797.

Jinno, M. (2011), "Assimilation, immigration, and the welfare state," FinanzArchiv / Public Finance Analysis, Vol. 67, pp. 46-63.

Jinno, M., (2013), "The impact of immigration under the defined-benefit pension system: An analysis incorporating assimilation costs," Demographic Research, Vol. 28, No. 21, pp.613-636.

Kemnitz, A., (2003), "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Vol. 105, No. 1, 2003, pp. 31-47.

Kemnitz, A., (2006), "Immigration, Unemployment and Domestic Welfare," Mohr Siebeck.

Kemnitz, A., (2008), "Can immigrant employment alleviate the demographic burden? The role of union centralization," Economics Letters, Vol. 99, No. 1, pp. 123-126.

Krieger, T., (2004) "Fertility Rates and Skill Distribution in Razin and Sadka's Migration-Pension Model: A Note," Journal of Population Economics, Vol. 17, pp. 177-182.

Lagos, F.M. and Lacomba, J.A., (2005), "The role of Immigration in the Retirement Age Reform: A Theoretical Analysis," Journal of Economic Analysis and Policy: Topics in Economic Analysis and Policy, Vol. 5, No. 1, 2005, pp. 1-18.

Razin, A. and Sadka, E., (1999), "Migration and Pension with International Capital Mobility," Journal of Public Economics, Vol. 74, pp.141--150.

Sato, M., S. Kato, and S. Takeda (2017), "Effects of Immigration in Japan: A Computable General Equilibrium Assessment," https://ssrn.com/abstract=2782708.

Shimasawa, M. and K. Oguro, (2010), "Impact of immigration on the Japanese economy: A multi-country simulation model," Journal of The Japanese and International Economies, Vol. 24, pp. 586-602.