Immigration and growth in an ageing economy

Muysken, Joan and Ziesemer, Thomas (2011). Immigration and growth in an ageing economy. UNU-MERIT.

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UNU-MERIT Working Papers

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  • Author Muysken, Joan
    Ziesemer, Thomas
    Title Immigration and growth in an ageing economy
    Publication Date 2011
    Publisher UNU-MERIT
    Abstract This paper argues that immigration can help to alleviate the burden ageing presents for the welfare states of most Western Economies. We develop a macroeconomic framework which deals with the impact of both ageing and immigration on economic growth. This is combined with a detailed model of the labour market, to include the interaction with lowskilled unemployment. The empirical relevance of some crucial model assumptions is shown to hold for the Netherlands, 1973 – 2007. The conclusions are that immigration will help to alleviate the ageing problem, as long as the immigrants will be able to participate in the labour force at least as much as the native population. Moreover, the better educated the immigrants are or become, the higher their contribution to growth will be.
    Keyword Ageing
    Immigration
    Unemployment
    Skills
    JEL E24
    F22
    O15
    O52
    Copyright Holder UNU-MERIT
    Copyright Year 2011
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    Created: Wed, 11 Dec 2013, 16:49:30 JST