Template-type: ReDIF-Paper 1.0
Author-Name: Muysken, Joan
Author-Email: j.muysken@maastrichtuniversity.nl
Author-Workplace-Name: School of Business and Economics, Maastricht University
Author-Name: Ziesemer, Thomas
Author-Email: ziesemer@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and School of Business and Economics,
	 Maastricht University
Title: The effect of net immigration on economic growth in an ageing economy: 
	 transitory and permanent shocks
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 
	 low-skilled unemployment. The empirical relevance of some crucial model 
	 assumptions is shown to hold for the Netherlands, 1973 - 2009, using a 
	 vector-error-correction model. The conclusions from the analysis of 
	 transitory and permanent shocks are that immigration will help to 
	 alleviate the ageing problem in the long run, 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.
Classification-JEL: E24, F22, O15, O52
Keywords: ageing, immigration, unemployment, skills
Series: UNU-MERIT Working Papers
Creation-Date: 2011
Number: 055
File-URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-055.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2011055