Who is in Favor of Immigration

14 Pages Posted: 10 Jun 2019

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

Shirit Katav-Herz

Academic College of Tel-Aviv Yafo

Date Written: May 2019

Abstract

Population ageing affects most countries, especially developed ones. The elderly have increased in number as a result of increased longevity and a parallel decline in fertility. This phenomenon is placing an increasing burden on the young to finance intergenerational transfers to the old, which is creating a threat to the stability of the pension system and the long-run viability of society as a whole. One possible solution is to permit more immigration, which will both increase the labor force and broaden the tax base. Increasing immigration has a variety of effects on the local population, which vary according to age and wealth. One of these is the threat to local social norms and culture since immigrants tend to maintain the culture of their country of origin. This effect increases with the number of immigrants and reduces the attractiveness of immigration as a solution to population ageing. This paper examines immigration as a solution to the problem of ageing population, while considering the implication of immigration on social norms.

Keywords: immigration, social norms, population ageing, intergenerational transfers, attitude toward immigrants

JEL Classification: J11, J15, J61

Suggested Citation

Epstein, Gil S. and Katav-Herz, Shirit, Who is in Favor of Immigration (May 2019). IZA Discussion Paper No. 12368. Available at SSRN: https://ssrn.com/abstract=3401136

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
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HOME PAGE: http://faculty.biu.ac.il/~epsteig/

IZA Institute of Labor Economics ( email )

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University College London - CReAM - Centre for Research and Analysis of Migration ( email )

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London, WC1H 0AX
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Shirit Katav-Herz

Academic College of Tel-Aviv Yafo ( email )

Israel

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