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PAYG challenge for preferential migration

Published online by Cambridge University Press:  07 July 2020

Gurgen Aslanyan Open the ORCID record for Gurgen Aslanyan [Opens in a new window]  and
Oleg Mariev
Gurgen Aslanyan*
Affiliation:
Ural Federal University, Ekaterinburg, Russia Manoogian Simone College of Business and Economics, American University of Armenia, Yerevan, Armenia CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Academy of Sciences of the Czech Republic, Prague, Czech Republic
Oleg Mariev
Affiliation:
Ural Federal University, Ekaterinburg, Russia Institute of Economics of the Ural Branch of the RAS, Ekaterinburg, Russia
*
*Corresponding author. Email: Gurgen.Aslanyan@cerge-ei.cz
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Abstract

The current study assesses the role of the pay-as-you-go system as an intergenerational redistributive mechanism while immigration control is considered. A theoretical model of a small open economy populated with overlapping generations of heterogeneous agents is used to show that skill-favouring immigration policies are, under rather permissive conditions, welfare depriving for the overall population. However, the policy-setting generation is shown to benefit from immigration control, thus decreasing the welfare for the future population.

Keywords

Immigrationintergenerational redistributionPAYGsocial securityF22H55J10
Type
Article
Information
Journal of Pension Economics & Finance , Volume 20 , Issue 2 , April 2021 , pp. 301 - 316
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press

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