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

12 Pages Posted: 1 Jun 2009 Last revised: 11 Jul 2010

See all articles by Assaf Razin

Assaf Razin

Tel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Edith Sand

Tel Aviv University - Eitan Berglas School of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: May 2009

Abstract

The pay-as-you-go social security system, increasingly burdened by dwindling labor force, can benefit from immigrants whose birth rates exceed those of the native born birth. The paper examines adynamic political-economy mechanism through which the social security system influences the young decisive voter's attitudes in favor 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. Thus, the social security system effectively provides an incentive to liberalize migration policy through a political-economy mechanism.

Suggested Citation

Razin, Assaf and Sand, Edith, Migration-Regime Liberalization and Social Security: Political-Economy Effect (May 2009). NBER Working Paper No. w15013. Available at SSRN: https://ssrn.com/abstract=1412045

Assaf Razin (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

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Israel
+972 3 640 7303 (Phone)
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National Bureau of Economic Research (NBER) ( email )

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CESifo (Center for Economic Studies and Ifo Institute)

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Centre for Economic Policy Research (CEPR)

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Edith Sand

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel

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