Immigration, the evolution of skills, and social security

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Title: Immigration, the evolution of skills, and social security
Authors: Guillo, Maria Dolores | Pérez Laborda, Alejandro | Pérez Sebastián, Fidel
Research Group/s: Grupo de Estudios de Paz y Desarrollo (GEPYD) | Análisis Económico
Center, Department or Service: Universidad de Alicante. Departamento de Métodos Cuantitativos y Teoría Económica | Universidad de Alicante. Departamento de Fundamentos del Análisis Económico
Keywords: Aging | Migration | Wage gap | Pension system
Knowledge Area: Fundamentos del Análisis Económico
Issue Date: May-2012
Publisher: LEPAS – Long-Run Economic Perspectives of an Ageing Society
Citation: GUILLÓ, María Dolores; PÉREZ-LABORDA, Alex; PÉREZ-SEBASTIÁN, Fidel. Immigration, the evolution of skills, and social security. LEPAS – Long-Run Economic Perspectives of an Ageing Society. Working Paper No. 2012-04
Abstract: Migration is sometimes seen as a panacea to circumvent the financial problems associated to ageing societies. Other authors, however, see it as a burden, because the arrival of migrant workers can depress the wage of non-educated natives and reduce the economy’s average productivity. In this paper, we analyze the effect of migration on workers’ productivity and the wage gap. We construct a life-cycle model with endogenous educational choices and health investment. Our results point out that, when human capital investment over the life cycle is possible, migration does not universally increase the wage gap, this depends on the economy’s initial conditions.
Sponsor: This paper belongs to the project LEPAS - Long-Run Economic Perspectives of an Ageing Society - a joint research initiative of the Universities of Alicante, Copenhagen, Hannover and the Vienna Institute of Demography. It is funded through the seventh framework programme by the European Community, Grant Agreement: SSH-2007-3.1.01- 217275.
Language: eng
Type: info:eu-repo/semantics/workingPaper
Peer Review: si
Appears in Collections:INV - GEPYD - Working Papers
INV - Análisis Económico - Working Papers
INV - DMCTE - Working Papers

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