The Effects of Immigration Inflows on the Sustainability of the Italian Welfare States

CeRP Working Paper No. 6/01

33 Pages Posted: 26 Mar 2001

See all articles by Flavia Coda Moscarola

Flavia Coda Moscarola

Center for Research on Pensions and Welfare Policies (CeRP)

Date Written: Undated

Abstract

This paper implements a set of generational accounts to estimate the impact of immigration on the sustainability of the Italian welfare state. Italians' net tax-age profiles are reconstructed on the basis of surveys; most of the immigrants' net tax-age profiles are reconstructed indirectly. According to our estimates immigration can only partly relieve the burden that current fiscal policy will put on future generations. In the baseline case immigrants' total net taxes reduce the intergenerational imbalance by only 6 percentage points. Interestingly, immigration appears to be more effective in this regard if the immigrants stay in Italy until they die. However, immigration alone cannot restore long-term solvency. Fundamental reform is needed.

Suggested Citation

Coda Moscarola, Flavia, The Effects of Immigration Inflows on the Sustainability of the Italian Welfare States (Undated). CeRP Working Paper No. 6/01. Available at SSRN: https://ssrn.com/abstract=264508 or http://dx.doi.org/10.2139/ssrn.264508

Flavia Coda Moscarola (Contact Author)

Center for Research on Pensions and Welfare Policies (CeRP) ( email )

Via Real Collegio, 30
Moncalieri, Turin
Italy
+34.011.64 (Phone)
+34.6403680 (Fax)

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