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Ageing-Driven Migration and Redistribution: Comparing Policy Regimes

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  • Assaf Razin
  • Alexander Horst Schwemmer

Abstract

Life cycle and insurance-type considerations dominate redistribution policy. Wage and fiscal prospects of ageing dominate migration policy. The paper compares distinct policy regimes, directed at migration and redistribution issues. Migration quotas, provision of social benefits, labor income taxation, and capital income taxation, are all endogenously determined in a policy-optimizing framework. The analysis makes a three-way comparison: free-migration regime vs. restricted-migration regime, welfare-state regime vs. no-migration-quota, no-redistribution regime, and low-income-majority regime vs. high-income-majority regime.

Suggested Citation

  • Assaf Razin & Alexander Horst Schwemmer, 2020. "Ageing-Driven Migration and Redistribution: Comparing Policy Regimes," NBER Working Papers 26998, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26998
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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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