Working Paper: CEPR ID: DP14574
Authors: Assaf Razin; Alexander Schwemmer
Abstract: Life cycle and insurance-type considerations dominate redistribution policy. Wage and fiscal burden implication dominate migration policy Ageing drive both migration and redistribution trends Fiscal prospects of ageing depend on two factors, in order to mitigate adverse macroeconomic impact of ageing. The first is the tendency towards for capital deepening; the second increased migration flows.In a macroeconomic framework the paper compares different policy regimes, directed at migration and redistribution issues: migration quotas, provision of social benefits, labor income and capital income taxation, - are all endogenously determined in a policy-optimizing framework. The analysis makes a three-way comparison: free-migration regime differentiated from restricted-migration regime, welfare-state regime distinguished from free-market regime, and low-income-majority regime assessed against high-income-majority regime.
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JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Ageing (J14) | Migration (F22) |
| Ageing (J14) | Redistribution Trends (D39) |
| Migration (F22) | Fiscal Sustainability (H68) |
| Migration Policy (F22) | Sustainability of Social Insurance Systems (H55) |
| Free Migration Regimes (F22) | Sustainable Welfare State (D69) |
| Migration Quotas (F22) | Provision of Social Benefits (H55) |
| Migration (F22) | Native Employment and Wages (J39) |