This paper reviews “Can Immigration Alleviate the Demographic Burden?” (2000) by Holger Bonin, Bernd Raffelhüschen and Jan Walliser published in the Journal of Public Finance Analysis. The aim of the paper is to answer the question of how immigration affects the long term fiscal impact in Germany using the method of generational accounting in order to determine the net contributions of migration to the public sector. Thereby the paper considers the question of whether immigration can alleviate the demographic burden of the ageing society in Germany that is laid upon the pay-as-you-go financed social security system.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Problem
- Methodology: Generational Accounting
- The Fiscal Effects of Immigration
- The Skill of Migrants
- Limitations of the Generational Accounting Method
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to investigate the long-term fiscal impact of immigration in Germany using the method of generational accounting. It seeks to determine whether immigration can alleviate the demographic burden of the ageing society in Germany, which is a challenge for the pay-as-you-go financed social security system.
- The impact of immigration on long-term fiscal sustainability in Germany
- The role of generational accounting in analyzing the fiscal effects of migration
- The importance of the skill level of migrants in determining their fiscal contributions
- The limitations of generational accounting and the need for further research on the economic effects of immigration
- The potential of immigration to contribute to a solution to the demographic challenges faced by Germany.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the problem of the ageing society in Germany and the potential for immigration to alleviate the demographic burden on the social security system. It also highlights the limitations of previous static approaches to analyzing immigration's fiscal impact.
- Methodology: Generational Accounting: This chapter explains the method of generational accounting as a dynamic approach to assess the long-term sustainability of government finances. It outlines the key components of the model and discusses how it can be used to analyze the fiscal effects of immigration.
- The Fiscal Effects of Immigration: This chapter presents the results of the study, which indicate that migrants' fiscal contributions are lower than those of natives, mainly due to lower education levels and earnings. However, the study also highlights that the young age structure of migrants can have a positive effect on the public budget.
- The Skill of Migrants: This chapter emphasizes the critical role of migrants' skills in their labor market integration and their fiscal contributions. It contrasts the findings of Bonin et al. with those of Raf-felhüschen and Moog (2016), which studied the impact of refugee migration in 2015.
- Limitations of the Generational Accounting Method: This chapter discusses the limitations of the generational accounting method, including its long time horizon, its focus on cash flows rather than individual utility, and its inability to account for macroeconomic feedback effects.
Schlüsselwörter (Keywords)
This paper examines the economic effects of immigration, focusing on its potential to alleviate the demographic burden of an ageing society. Key concepts include generational accounting, fiscal sustainability, immigration policy, skill levels of migrants, and labor market integration. The study explores the impact of migration on government finances and examines the limitations of using generational accounting to evaluate its long-term consequences.
- Quote paper
- Tobias Kohlstruck (Author), 2018, A review of "Can Immigration Alleviate the Demographic Burden", Munich, GRIN Verlag, https://www.grin.com/document/439090
