Immigration Can Alleviate the Aging Problem

28 Pages Posted: 13 Jul 2011

See all articles by Joan Muysken

Joan Muysken

University of Maastricht

Frank Cörvers

Maastricht University

Thomas Ziesemer

Maastricht University - Department of Economics; UNU-MERIT

Date Written: July 1, 2011

Abstract

This paper analyses the way immigration can help to alleviate the burden aging presents for the welfare states of most Western Economies. We develop a macroeconomic framework which deals with the impact of both aging and immigration on economic growth. This is combined with a detailed model of the labor market, to include the interaction with unemployment, while distinguishing between low- and high-skilled labor. The empirical relevance of some crucial model assumptions are shown to hold for the Netherlands, 1973-2005. The conclusions are that immigration will help to alleviate the aging problem, as long as the immigrants will be able to find work. Moreover, the better educated the immigrants are or become, the higher their contribution to growth will be.

Keywords: aging, immigration, unemployment, skills

Suggested Citation

Muysken, Joan and Corvers, Frank and Ziesemer, Thomas, Immigration Can Alleviate the Aging Problem (July 1, 2011). Netspar Discussion Paper No. 07/2011-058. Available at SSRN: https://ssrn.com/abstract=1884887 or http://dx.doi.org/10.2139/ssrn.1884887

Joan Muysken

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Frank Corvers (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Thomas Ziesemer

Maastricht University - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

UNU-MERIT ( email )

Boschstraat 24
Maastricht, 6211AX
Netherlands

HOME PAGE: http://www.merit.unu.edu/about/profile.php?id=58

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