Immigration and Growth in an Aging Economy

United Nations University Working Papers Series No. 2011-012

41 Pages Posted: 26 Oct 2011

See all articles by Joan Muysken

Joan Muysken

University of Maastricht

Thomas Ziesemer

Maastricht University - Department of Economics; UNU-MERIT

Date Written: February 26, 2011

Abstract

This paper argues that 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 low-skilled unemployment. The empirical relevance of some crucial model assumptions is shown to hold for the Netherlands, 1973–2007. The conclusions are that immigration will help to alleviate the aging problem, as long as the immigrants will be able to participate in the labor force at least as much as the native population. Moreover, the better educated the immigrants are or become, the higher their contribution to growth will be.

Keywords: ageing population, immigration, unemployment, skills

JEL Classification: E24, F22, O15, O52

Suggested Citation

Muysken, Joan and Ziesemer, Thomas, Immigration and Growth in an Aging Economy (February 26, 2011). United Nations University Working Papers Series No. 2011-012. Available at SSRN: https://ssrn.com/abstract=1949677 or http://dx.doi.org/10.2139/ssrn.1949677

Joan Muysken (Contact Author)

University of Maastricht ( 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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