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Immigration policy and demographic dynamics: Welfare analysis of an aging Japan

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  • Okamoto, Akira

Abstract

This study quantified the effects of immigration policies in an aging and depopulating Japan. Under a constant total number of immigrants, it focused on the optimal period for an immigration policy that maximized per-capita utility. Simulation results, based on an extended lifecycle simulation model with endogenous fertility, showed that a longer period immigration policy increased the future population and enhanced long-run economic growth. Conversely, a shorter period immigration policy enhanced economic growth in earlier years but less so in the long run. This study found that an optimal duration for an immigration policy, under the standard parameter settings for Japan, was nine years; this finding was derived through reconciling the merits and demerits between shorter and longer period immigration policies.

Suggested Citation

  • Okamoto, Akira, 2021. "Immigration policy and demographic dynamics: Welfare analysis of an aging Japan," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:jjieco:v:62:y:2021:i:c:s0889158321000472
    DOI: 10.1016/j.jjie.2021.101168
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    Cited by:

    1. Jinno, Masatoshi & Yasuoka, Masaya, 2022. "The effects of admittingi Immigrants: a look at Japan’s school and pension systems," MPRA Paper 115182, University Library of Munich, Germany.
    2. Kato, Ryuta Ray, 2022. "Population aging and labor mobility in Japan," Japan and the World Economy, Elsevier, vol. 62(C).
    3. Okamoto, Akira, 2022. "Intergenerational earnings mobility and demographic dynamics: Welfare analysis of an aging Japan," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 76-104.
    4. Pandyaswargo, Andante Hadi & Siregar, Tifani Husna & Onoda, Hiroshi, 2023. "Exploring Japan’s older adults mobility challenges and the potential role of autonomous vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).

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    More about this item

    Keywords

    Immigration policy; Aging population; Welfare analysis; Dynamic overlapping generations model; Simulation analysis;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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