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Migration with pension reform expectations

Author

Listed:
  • Marek Gora

    (Warsaw School of Economics, Warsaw, Poland; Institute of Labor Economics (IZA), Bonn, Germany)

  • Anna Ruzik-Sierdzinska

    (Warsaw School of Economics, Warsaw, Poland)

Abstract

Pension reforms, which imply a reduction in the generosity of pension benefits, are becoming widespread in response to the demographic transition. The scale, the timing, and the pace of these reforms vary across countries. In this theoretical article, the authors analyse individual migration decisions, by adding a component linked to the expected old-age pension benefits in sending and receiving countries in two cases: when the pension system rules are known, and when there is a risk of pension systems reforms. The results indicate that when individuals fail to take future pension wealth into account, they can make sub-optimal migration decisions.

Suggested Citation

  • Marek Gora & Anna Ruzik-Sierdzinska, 2020. "Migration with pension reform expectations," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 203-219.
    • Handle: RePEc:ipf:psejou:v:44:y:2020:i:2:p:203-219
    DOI: 10.3326/pse.44.2.3
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    References listed on IDEAS

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    More about this item

    Keywords

    migration decisions; pension benefits; pension reforms; institutional uncertainty;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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