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Ageing-Driven Migration and Redistribution: Comparing Policy Regimes

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  • Razin, Assaf
  • Schwemmer, Alexander

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.

Suggested Citation

  • Razin, Assaf & Schwemmer, Alexander, 2020. "Ageing-Driven Migration and Redistribution: Comparing Policy Regimes," CEPR Discussion Papers 14574, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14574
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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H4 - Public Economics - - Publicly Provided Goods
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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