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The Effects of Immigration on Social Expenditure in Host Countries

Author

Listed:
  • Takuya Matsuyama

    (Graduate School of Economics, Kobe University)

  • Tomomi Miyazaki

    (Graduate School of Economics, Kobe University)

Abstract

This paper examines the relationship between immigration and social welfare expenditure in the host countries using OECD panel data. Particular focus is placed on the age structure and educational level of immigrants. Empirical results show that while unskilled immigrants including asylum seekers are not necessarily a burden to the host countries, medium and highly skilled immigrants contribute to a decrease in social expenditure. In particular, highly skilled immigrants mitigate the increase in social expenditure related to welfare for the elderly driven by the aging of immigrants.

Suggested Citation

  • Takuya Matsuyama & Tomomi Miyazaki, 2017. "The Effects of Immigration on Social Expenditure in Host Countries," Discussion Papers 1708, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1708
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2017/1708.pdf
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    References listed on IDEAS

    as
    1. Juan A. Lacomba & Francisco Lagos, 2010. "Immigration and Pension Benefits in the Host Country," Economica, London School of Economics and Political Science, vol. 77(306), pages 283-295, April.
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    6. Costas Meghir & David Phillips, 2008. "Labour supply and taxes," IFS Working Papers W08/04, Institute for Fiscal Studies.
    7. Assaf Razin & Jackline Wahba, 2015. "Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 369-402, April.
    8. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, March.
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    More about this item

    Keywords

    Immigration; social welfare expenditure;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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