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The effects of admittingi Immigrants: a look at Japan’s school and pension systems

Author

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  • Jinno, Masatoshi
  • Yasuoka, Masaya

Abstract

This paper investigates the effects of admitting immigrants to Japan on the welfare of native Japanese residents. The paper considers the imperfect substitutability between native and immigrant laborers in line with the pension and education systems. It is argued that immigration may have indirect negative effects, for example, imposing the additional burden of educating immigrant children who require additional support to master the Japanese culture, customs, and language. This research uses numerical data analysis of Japan. The findings indicate that admitting immigrants, even when they are not perfectly complementary, might increase the wage level and the utility of the natives. There are also direct implications on the type of pension system that is available for natives and immigrants. This study recommends that the defined replacement rate pension system is preferable for natives when there is a relatively substitutable relationship between natives and immigrants.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:115182
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    References listed on IDEAS

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    More about this item

    Keywords

    immigrants; burden of schooling; pension; substitutability; complementarity;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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