Sustaining Fiscal Policy Through Immigration

Posted: 18 Apr 2000

See all articles by Kjetil Storesletten

Kjetil Storesletten

University of Oslo - Department of Economics; Centre for Economic Policy Research (CEPR)

Abstract

Using a calibrated general equilibrium overlapping generations model, which explicitly accounts for differences between immigrants and natives, this paper investigates whether a reform of immigration policies alone could resolve the fiscal problems associated with the aging of the baby boom generation. Such policies are found to exist and are characterized by an increased inflow of working-age high- and medium-skilled immigrants. One particular feasible policy involves admitting 1.6 million 40-44-year-old high-skilled immigrants annually. These findings are illustrated by computing the discounted government gain of admitting additional immigrants, conditional on their age and skills.

JEL Classification: H39, J61

Suggested Citation

Storesletten, Kjetil, Sustaining Fiscal Policy Through Immigration. Journal of Political Economy, Vol. 108, Issue 2, April 2000, Available at SSRN: https://ssrn.com/abstract=212927

Kjetil Storesletten (Contact Author)

University of Oslo - Department of Economics ( email )

P.O. Box 1095 Blindern
N-0317 Oslo
Norway
+47 2284 4009 (Phone)
+47 2285 5035 (Fax)

HOME PAGE: http://folk.uio.no/kjstore/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
929
PlumX Metrics