Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization

Kemnitz, Alexander

doi:10.2139/ssrn.812310

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Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization

CESifo Working Paper Series No. 1525

17 Pages Posted: 28 Sep 2005

See all articles by Alexander Kemnitz

Alexander Kemnitz

TU Dresden; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: August 2005

Abstract

This paper investigates the effect of labor immigration on public pensions when wage setting by a centralized trade union leads to unemployment. It is shown that immigration improves the financial soundness of pay-as-you-go pensions if and only if it diminishes total employment. This occurs if the absolute value of the elasticity of labor demand exceeds the unemployment rate.

Keywords: immigration, public pensions, trade union

JEL Classification: F22, H55, J51

Suggested Citation: Suggested Citation

Kemnitz, Alexander, Can Immigrant Employment Alleviate the Demographic Burden? The Role of Union Centralization (August 2005). CESifo Working Paper Series No. 1525, Available at SSRN: https://ssrn.com/abstract=812310 or http://dx.doi.org/10.2139/ssrn.812310