Aging, factor returns, and immigration policy

Arbeitspapier

In this note we analyze how aging affects immigration policy. We set up a dynamic political-economy model of representative democracy in which the government of the destination country sets the immigration level to maximize aggregate welfare of the constituency. Aging, i.e. a decline in the growth rate of the native population, has an expansionary effect on immigration. This immigration effect may even overcompensate the initial decline in population growth such that the total labor force grows more strongly and the capital stock per worker declines. We also compare our results to the social planner allocation and to the median-voter equilibrium.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 2009,26

Classification and Topics

• Classification: Wirtschaft ; Positive Analysis of Policy Formulation and Implementation ; International Migration
• Subject: Demographic change ; political economy ; immigration policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Calahorrano, Lena ; Lorz, Jens Oliver
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Faculty of Business Administration and Economics
• (where): Marburg
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30102
• Last update: 10.03.2025, 11:42 AM CET